Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) Luthers current ratio for 2006 is closest to _______ Luthers book debt to Equity Ratio for 2006 is closest to _______ 2) on the

1) Luthers current ratio for 2006 is closest to _______
Luthers book debt to Equity Ratio for 2006 is closest to _______
2) on the second picture
3) on the second picture
image text in transcribed
image text in transcribed
1) Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in 9 millions) Liabilities and Assets 2006 2005 Stockholders' Equity 2006 2005 Current Assets Current Liabilities Cash 63.8 58.5 Accounts payable 89.2 73.5 Notes payable/ Accounts receivable 55.5 39.6 short-term debt 10.8 9.6 Current maturities of 44.7 42.9 37.9 Inventories long-term debt 36.9 Other current assets 5.3 3.0 6.0 12.0 Other current liabilities 143.9 132.0 Total current assets Long-Term Assets Long-Term Liabilities Land 66.2 62.1 Long-term debt 236.4 168.9 Buildings 107.3 91.5 Capital lease obligations Equipment 120.5 99.6 Less accumulated depreciation (56.9) (52.5) Deferred taxes 22.8 22.2 Net property, plant, and equipment 237.1 200.7 Other long-term liabilities Goodwill 60.0 --- Total long-term liabilities 259.2 191.1 Other long-term assets 63.0 42.0 Total liabilities 403.1 323.1 Total long-term assets 360.1 242.7 Stockholders' Equity 126.3 63.6 Total liabilities and Stockholders' Equity Total Assets 529.4 386.7 529.4 386.7 Refer to the balance sheet above. Luther's current ratio for 2006 is closest to Luther's book debt to Equity Ratio for 2006 is closest to Formula List: Current ratio Current Assets Current Liabilites Long-term Debt+Short-term Debt Book Debt-to-Equity Ratio =- Book Value of Equity 2) Sara wants to have $600,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 9%, to ensure that she has $600,000 in 25 years? 3) What is the future value (FV) of $200,000 in ten years, assuming the interest rate is 5% per year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Crypto Hardware Wallets A Practical Guide For Beginners

Authors: Vincent Bryant

1st Edition

979-8395867742

More Books

Students also viewed these Finance questions