Question
A) As of Oct. 1, 2022 the manufacturing company ABC Inc, has the following assets and liabilities (all figures in millions of dollars) given in
A) As of Oct. 1, 2022 the manufacturing company ABC Inc, has the following assets and liabilities (all figures in millions of dollars) given in the table below. This company has issued 40,000 shares of 6% Preferred stock $100 par. The company's number of common stocks outstanding is 2,000,000 with $1 par value. Common stocks were initially sold at $9 a share when company went public.
Prepare the balance sheet for ABC Inc.
Item Value Item Value
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Equipment 7 Building 12
Cash 2 Cash equivalent 1
Account receivable 3 Account payable 3
Inventory 3 Loan from Bank@ 5% 3
10 year 6% Bond 5 Land 6
Wages payable 3 Goodwill and patents 3
Retained earnings 2
B) Use the balance sheet of ABC and compute the following metrics:
(a) Debt-to-Equity Ratio
(b) Working Capital
(c) Current Ratio
(d) Acid-test-Ratio
(e) Book Value per share
(f) Total Capitalization
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