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Clayton Industries has the following account balances: Current assets Noncurrent assets $ 27,000 73,000 Current liabilities Noncurrent liabilities Stockholders' equity $ 13,000 55,000 32,000 The
Clayton Industries has the following account balances: Current assets Noncurrent assets $ 27,000 73,000 Current liabilities Noncurrent liabilities Stockholders' equity $ 13,000 55,000 32,000 The company wishes to raise $41,000 in cash and is considering two financing options: Clayton can sell $41,000 of bonds payable, or it can issue additional common stock for $41,000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required a-1. Compute the current ratio for Clayton's management. (Round your answers to 2 decimal places.) Current Ratio to 1 Currently If bonds are issued to 1 If stock is issued to 1 a-2. Compute the debt-to-assets ratio for Clayton's management. (Round your answers to 1 decimal place.) Currently If bonds are issued If stock is issued Debt to Assets Ratio 68.01% : % 48.2%
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