[solved] Given the following Year 12 balance sheet data for a footwear company:
Given the following Year 12 balance sheet data for a footwear company:
Balance Sheet Data
Cash on Hand$ 10,000
Total Current Assets100,000
Total Fixed Assets250,000
Total Assets$350,000
Accounts Payable$ 20,000
Overdraft Loan Payable0
1-Year Bank Loan Payable5,000
Current Portion of Long-Term Bank Loans17,000
Total Current Liabilities42,000
Long-Term Bank Loans Outstanding98,000
Total Liabilities140,000
Shareholder Equity:Year 11
BalanceYear 12
Change
Common Stock20,000020,000
Additional Capital110,0000110,000
Retained Earnings60,00020,00080,000
Total Shareholder Equity190,000+20,000210,000
Total Liabilities and Shareholder Equity$350,000
Based on the above figures and the definition of the debt-assets ratio presented in the Help section for p. 5 of the Footwear Industry Report, the company’s debt-assets ratio (rounded to 2 decimal places) is
0.57.
0.32.
0.38.
0.43.
0.40.
