Selected current year-end financial statements of GENESIS Corporation follow. All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748.Compute the following: debt-to-equity ratio, times interest earned, profit margin ratio GENESIS CORPORATIONBalance SheetDecember 31, of Current YearAssetsCash$ 10,000Short-term investments8,400Accounts receivable, net33,700Merchandise inventory32,150Prepaid expenses2,650Plant assets, net153,300Total assets$240,200Liabilities and EquityAccounts payable$ 17,500Accrued wages payable3,200Income taxes payable3,300Long-term note payable, secured by mortgage on plant assets63,400Common stock90,000Retained earnings62,800Total liabilities and equity$240,200GENESIS CORPORATIONIncome StatementDecember 31, of Current YearSales$448,600Cost of goods sold297,250Gross profit151,350Operating expenses98,600Interest expense4,100Income before taxes48,650Income tax expense19,598Net income$ 29,052

Debt-to-equity ratio is a solvency ratio which measures how much equity is available against long…

Selected current year-end financial statements of GENESIS Corporation follow. All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748. Compute the following: debt-to-equity ratio, times interest earned, profit margin ratio

Selected current year-end financial statements of GENESIS Corporation follow. All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748. Compute the following: debt-to-equity ratio, times interest earned, profit margin ratio

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.1C: Leverage Cook Corporation issued financial statements at December 31, 2019, that include the...

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