Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
5th Edition
ISBN: 9780134077345
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 15, Problem 15.8SE
Shine's Companies, a home improvement store chain, reported the following summarized figures:
Shine's has 100,000 common shares outstanding during 2016.
Measuring ability to pay liabilities
Requirements
- 1. Compute the debt ratio and the debt to equity ratio at May 31, 2016, for Shine’s Companies.
- 2. Is Shine’s ability to pay its liabilities strong or weak? Explain your reasoning.
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As of December 31, 2015, Lincolnshire Company had assets of $1,850,000 and liabilities of $570,000. During 2016, the stockholders invested an additional $100,000 and paid dividends of $60,000 from the business.
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The balance sheet for the company at December 31, 2015, indicated that total assets were $173,000, total liabilities were $61,000, and Common Stock had a balance of $72,000. At December 31, 2016, assets had increased by $40,000 and there had been no change in the amount of Common Stock. Additional information for 2016 included the following:
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Chapter 15 Solutions
Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
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