The following information is available for Mods Media Ltd 2018 2017 Total assets Total liabilities Share capital Retained earnings $ 1 630000 900000 365000 365000 $ 1 725000 850000 480000 395000 Required A Calculate the following ratios for 2017 and 2018 1 Debt ratio 2 Equity ratio 3 Capitalisation...

A B The trend from 2017 to 2018 shows that the lev ...

The following information is available for Mods Media Ltd. 2018 2017 Total assets Total liabilities Share capital

Question:

The following information is available for Mods Media Ltd.

2018

2017

Total assets

Total liabilities

Share capital

Retained earnings

1 630000

900000

365000

1 725000

850000

480000

395000

Required

A. Calculate the following ratios for 2017 and 2018:

1. Debt ratio

2. Equity ratio

3. Capitalisation ratio.

B. What do these ratios indicate about the company’s gearing?

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Accounting

ISBN: 978-1118608227

9th edition

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

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Question Posted: Jun 25, 2019 05:23 AM

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The following information is available for Mods Media Ltd. 2018 2017 Total assets Total liabilities Share capital

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A B The trend from 2017 to 2018 shows that the lev...View the full answer

Accounting

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