Question
1.You are establishing a new subsidiary for your company.You believe that the subsidiary will generate sales of $15 million, and will conform to the industry
1.You are establishing a new subsidiary for your company.You believe that the subsidiary will generate sales of $15 million, and will conform to the industry ratios listed below the balance sheet.What will the balance sheet entries be?
Cash500,000Wages Payable250,000
A/RN/P_________________________
Inventory______________TCL
TCALTD________________________
NFA__________________Total Debt
TAS/E_________________________
TL&SE
Industry Ratios:
Current Ratio4
Quick Ratio2
Price/Earnings12
Market/Book2
TCL/SE.20
Total Asset TO3
Times Int. Earned4
Debt Ratio.50
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College Accounting Chapters 1-13
Authors: John Price, M David Haddock, Michael Farina
13th Edition
007743062X, 9780077430627
