FINANCIAL+MANAGERIAL ACCOUNTING
17th Edition
ISBN: 9781323409169
Author: Miller
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.
What is the net income for the company during 2016, assuming that as of December 31, 2016, assets were $1,960,000, and liabilities were $510,000?
Group of answer choices
A) $170,000
B) $130,000
C) $210,000
D) $40.000
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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$143,000
Expenses
88,000
Dividends
9,000
What were the total liabilities on December 31, 2016?
Answer pleaser
Flynn Plastics Company reports the following data in its September 30, 2015, financial statements:
Gross sales $225 000
Current assets $50 000
Long-term assets $130 000
Current liabilities $33 000
Long-term liabilities $52 000
Net income $11 250
(a) Compute the owners’ equity.
(b) Compute the current ratio.
(c) Compute the debt-to-equity ratio.
Chapter 15 Solutions
FINANCIAL+MANAGERIAL ACCOUNTING
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