The following information is available for Mods Media Ltd. Required (a) Calculate the following ratios for 2020

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The following information is available for Mods Media Ltd.

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Required

(a) Calculate the following ratios for 2020 and 2019:
i. debt ratio

ii. equity ratio

iii. capitalisation ratio.

(b) What do these ratios indicate about the company’s gearing?

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Financial Accounting

ISBN: 9780730363217

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield

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Question Posted: Mar 09, 2024 06:04 AM

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The following information is available for Mods Media Ltd. Required (a) Calculate the following ratios for 2020

Question:

Total assets Total liabilities Share capital Retained earnings 2020 $1 630 000 2019 $1725 000 900 000 850 000 365 000 480 000 365 000 395 000

Step by Step Answer:

a Ratios for 2020 and 2019 i Debt Ratio DebtRatio TotalLiabilities TotalAssets DebtRatio TotalLiabilities TotalAssets DebtRatioTotal Assets Total Liab...View the full answer

Financial Accounting

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