Use the following information to answer the questions: Assets Liabilities and Equity Cash 14,000 Accounts payable 16,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 4,000 Current liabilities 22,000 Inventory 24,000 Long-term debt 95,000 Current assets 44,000 Total liabilities 117,000 Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings 21,000 Net fixed assets 114,000 Equity 41,000 Total assets 158,000 Total liab. & equity 158,000 Line item Value Sales 80,000 - Costs 65,600 - Depreciation 2,000 = EBIT 12,400 - Interest 800 = Taxable income 11,600 - Taxes 3,828 = Net income 7,772
Use the following information to answer the questions: Assets Liabilities and Equity Cash 14,000 Accounts payable 16,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 4,000 Current liabilities 22,000 Inventory 24,000 Long-term debt 95,000 Current assets 44,000 Total liabilities 117,000 Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings 21,000 Net fixed assets 114,000 Equity 41,000 Total assets 158,000 Total liab. & equity 158,000 Line item Value Sales 80,000 - Costs 65,600 - Depreciation 2,000 = EBIT 12,400 - Interest 800 = Taxable income 11,600 - Taxes 3,828 = Net income 7,772
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 49E
Related questions
Concept explainers
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
Question
Use the following information to answer the questions:
| Assets | Liabilities and Equity | |||
| Cash | 14,000 | Accounts payable | 16,000 | |
| Marketable securities | 2,000 | Notes payable | 6,000 | |
| Accounts receivable | 4,000 | Current liabilities | 22,000 | |
| Inventory | 24,000 | Long-term debt | 95,000 | |
| Current assets | 44,000 | Total liabilities | 117,000 | |
| Machines | 34,000 | Paid-in capital | 20,000 | |
| Real estate | 80,000 | 21,000 | ||
| Net fixed assets | 114,000 | Equity | 41,000 | |
| Total assets | 158,000 | Total liab. & equity | 158,000 |
| Line item | Value |
| Sales | 80,000 |
| - Costs | 65,600 |
| - |
2,000 |
| = EBIT | 12,400 |
| - Interest | 800 |
| = Taxable income | 11,600 |
| - Taxes | 3,828 |
| = Net income | 7,772 |
What is the total debt ratio (including all liabilities)?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning