Balance sheet December 31 Assets 20072006 Cash $25,000$40,000 Short term investments 15,00060,000 Accounts receivable 50,00030,000 Inventory 50,00070,000 Property, plant and equipment (net160,000200,000 Total assets$300,000$400,000 Liabilities
Balance sheet
December 31
Assets 20072006
Cash $25,000$40,000
Short term investments 15,00060,000
Accounts receivable 50,00030,000
Inventory 50,00070,000
Property, plant and equipment (net160,000200,000
Total assets$300,000$400,000
Liabilities and stockholders equity
Accounts payable$20,000$30,000
Short term notes payable40,00090,000
Bonds payable 80,000160,000
Common stock 60,00045,000
Retained earnings100,00075,000
Total liabilities and stockholders equity$300,000$400,000
Income statement (for the year ended December 31, 2007)
Net sales$360,000
Cost of goods sold184,000
Gross profit176,000
Expenses
Selling expenses30,000
Administrative expenses 59,000
Total expenses 89,000
Income before interest expense and taxes87,000
Interest expense12,000
Income before income taxes75,000
Income tax expense30,000
Net income $45,000
Additional information
120,000 shares were outstanding in 2007: 90,000 shares were outstanding in 2006
Market value of common stock on December 31, 2007 was $12 per share.
- Debt ratio is:
- Long term debt ratio:
- Debt to equity is:
- Times interested earned ratio is:
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Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
9th edition
1439037809, 978-1439037805
