Income Statement and Balance Sheet Analysis Answer each of the following independent questions: 1. Nicholas Toy Company
Question:
Income Statement and Balance Sheet Analysis Answer each of the following independent questions:
1. Nicholas Toy Company had a net income for the year ended December 31, 2009, of $72,000. Its total assets at December 31, 2009, were $1,860,000. Its total stockholders’
equity at December 31, 2009, was $910,000. Calculate Nicholas Toy’s return on equity.
2. On January 1, 2009, Andrew’s Bookstore had current assets of $293,000 and current liabilities of $185,000. By the end of the year, its current assets had increased to
$324,000 and its current liabilities to $296,000. Did the current ratio change during the year? If so, by how much?
3. The total liabilities and stockholders’ equity of Ryan James Corporation is $750,000. Its current assets equal 40% of total assets and the current ratio is 1.5. Further, the ratio of stockholders’ equity to total liabilities is 3 to 1. Determine
(a) the amount of current liabilities and
(b) the debt ratio.
Step by Step Answer:
Accounting Concepts And Applications
ISBN: 9780324376159
10th Edition
Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain