Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. what is the debt ratio and what does the final number tell managers or investors? 2. what is the return on equity and what

1. what is the debt ratio and what does the final number tell managers or investors?
2. what is the return on equity and what does the final number tell managers or investors? image text in transcribed
image text in transcribed
cted .. - Saved to this PC Search Slide Show Review View Help Unless you need to edit, it's safer to stay in Protected View Enable Editing EXHIBIT 8.1 The Balance Sheet for Bigbux Balance Shes December 31, 2017 Recure owned ASSETS Current Asset Cash Accounts receivable Inventory Total current assets Plant, Property and Equipment Less: Accumulated depreciation Net plant, property and equipment Total Assets $10.00 187000 390.000 771.000 997.000 64.000 $933,000 $1.704.000 Liabled (What the im owes to outsiders) LIABILITIES Current Liabilities Accounts payable Wages payable Total current bites Long-term Liabilities Long term loan Total Liabilities $220.000 300.000 550.000 380.000 $900.000 Owners or Stockholders' STOCKHOLDERS' EQUITY Common Equity Commons Rending Total Stockholders' Equity $300.000 504 000 04000 Total Liabilities and Stockholders' Equity $1704.000 Notes e Enable Editing need to edit it's safe to stay in Protected View EXHIBIT 8.2 Income Statement for Bigbux Bigbus, Inc. Income Statement For Your Ending December 31, 201X What the firm carne) 890,000.00 550.000.00 340,000.00 Sales Revenue Cost of goods sold Gross Profit Operating Expenses Selling expenses Administrative expenses Total Operating Expenses 79,000.00 86,000.00 165,000.00 oats and Expenses ash spent and other sources used up) Net Operating Income Interest expense Taxable income Taxes Net Income 175,000.00 12,000.00 163,000.00 62,000.00 101,000.00 Equals Net Income at if positive or loss if negativo) Dividends Transfer to Retained Earnings 55,000.00 46,000.00

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_2

Step: 3

blur-text-image_3

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

Auditing For Managers The Ultimate Risk Management Tool

Authors: K. H. Spencer Pickett, Jennifer M. Pickett

1st Edition

0470090987, 978-0470090985

More Books

Students also viewed these Accounting questions