Question
1. Johnston & Myers Inc. had the following balance sheet data for a recent year: Current assets $720,000 Property, plant, and equipment (net) 1,110,000 Current
1. Johnston & Myers Inc. had the following balance sheet data for a recent year:
| Current assets | $720,000 |
| Property, plant, and equipment (net) | 1,110,000 |
| Current liabilities | 230,000 |
| Long-term liabilities | 450,000 |
| Common stock, $10 par | 250,000 |
| Retained earnings | 1,000,000 |
What is Johnston & Myers Inc.s ratio of fixed assets to long-term liabilities?
a. 0.9
b. 2.1
c. 4.1
d. None of these choices are correct.
2. Johnston & Myers Inc. had the following balance sheet data for a recent year:
| Current assets | $720,000 |
| Property, plant, and equipment (net) | 1,110,000 |
| Current liabilities | 230,000 |
| Long-term liabilities | 450,000 |
| Common stock, $10 par | 250,000 |
| Retained earnings | 1,000,000 |
What is Johnston & Myers Inc.s ratio of liabilities to stockholders equity?
a. 0.5
b. 0.7
c. 0.9
d. None of these choices are correct.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
A Practical Guide To UK Accounting And Auditing Standards
Authors: Steve Collings
1st Edition
152650331X, 9781526503312
