Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
5. 10 points Use the balance sheet and income statements below and on the next page to calculate the ratios indicated at the end of
5. 10 points Use the balance sheet and income statements below and on the next page to calculate the ratios indicated at the end of the problem. KAT CORPORATION Balance Sheet December 31, 2018 Assets Current assets; Cash Marketable securities Accounts receivable (net) Inventory Total current assets $50,000 20,000 160,000 200,000 430,000 Investments Plant and equipment Less: Accumulated depreciation Net plant and equipment. Total assets 60,000 $600,000 410,000 900,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities $90,000 70,000 10,000 $ 170,000 Long-term liabilities Bonds payable Total liabilities 320,000 Stockholders' equity: Preferred stock, $50 par value Common stock, $1 par value Capital paid in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $100,000 80,000 190,000 210,000 580,000 $900,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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