Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

a. current ratio b. debt to equity ratio c. interest coverage ratio( assume expense equalsinterest paid) d. return on assets e.financial leverage f.return on equity

a. current ratio
b. debt to equity ratio
c. interest coverage ratio( assume expense equalsinterest paid)
d. return on assets
e.financial leverage
f.return on equity
image text in transcribed
\begin{tabular}{|c|c|c|} \hline 4 & \multicolumn{2}{|l|}{ Brownsville Industries } \\ \hline 5 & Balance Sheet & \\ \hline 6 & At June 30 & \\ \hline 7 & Cash & $26,000 \\ \hline 8 & Short-Term Investments & 51,000 \\ \hline 9 & Accounts Receivable (net) & 125,000 \\ \hline 10 & Merchandise Inventory & 82,400 \\ \hline 11 & rivpe & 325,000 \\ \hline 12 & Intangible Assets & 19.500 \\ \hline 13. & Total Assets & $628,900 \\ \hline 14. & & \\ \hline 15 & Current Liabilities & $97,500 \\ \hline 16 & 11% Bonds payable, long-term & 200,000 \\ \hline 17. & Common Stock & 10,000 \\ \hline 18 & Paid in Capital in excess of par & 40,000 \\ \hline 19 & Retained Eamings & 281,400 \\ \hline 20 & Total Liabilities and Equity & $628,900 \\ \hline 21 & & \\ \hline 22 & Brownsville Industries & \\ \hline 23 & Income Statement & \\ \hline 24 & For the Year Ended June 3 & \\ \hline 25 & & $750,000 \\ \hline 26 & Cost of Goods Sold & 395,000 \\ \hline 27. & Gross Profit & $355,000 \\ \hline 28 & Operating Expenses & 155,400 \\ \hline 29 & Operating Income & $199,600 \\ \hline 30 & Interest Expense & 22,000 \\ \hline 31. & Income before Income Taxes & 517,600 \\ \hline 32 & Income Taxes & 53.280 \\ \hline 33 & Net Income & $124,320 \\ \hline 34 & & \\ \hline 35 & & \\ \hline 36 & Pnor vear data & \\ \hline 37 & Total Assets & $525,000 \\ \hline 38 & 3 Shareholders' Equity & 220.000 \\ \hline 39 & & \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions