Complete the Ratio Worksheet for each financing option (there are 3).
KTZFIG Consulting and Sales Inc Post Closing Trial Balance June 30, 2021 198,600 75,580 Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Inventory 4,690 o Prepaid Insurance 1 Land 2 Building 56,500 58,596 57,890 160,000 459,600 Accumulated Depr- Building Accumulated Depr- Office Equip Accumulated Depr- Computer Equip 19,356 4 Office Equipment 785,600 45,600 1,379,160 debt 1,349,500 equity 6 Computer Equipment 978,500 32,560 56,560 16,850 58,950 250,000 490,000 506,800 500,000 Accounts Payable 9 Utilities Payable 0 Wages Pavable 1Short Term Note Payable Long term Note Payable Mortgage Payable Common Stock ($1 par, 1,000,000 5 shares authorized, 500,000 issued 6 and outstanding) Retained Earnings 849,500 2,830,866$ 2,830,866 The company could issue $3,000,000 of long-term bonds, due in 8 years with a stated rate of interest, paid semiannually, of 4%. The market rate for similar debt is 6%. Annual Cash Required $120,000 Cash Received $2,623,176 3,000,000 4% Face amount Face rate Interest Payment periods Interest Payment Term Periods Market rate PV factors used 6 month:s 60000 16 6% 0.62317 12.5611 1869510 753666 single sum annuity PV face PVinterest The company could issue $2,500,000 of long-term bonds, due in 7 years with a stated rate of interest, paid semiannually, of 6%. The market rate for similar debt is 4%. Cash Received Annual Cash Required $2,802,657 $150,000 2500000 6% Face amount Face rate Interest Payment periods Interest Payment Term Periods Market rate PV factors used 6 months 75000 14 4% 0.757875 12.10625 1894688 907968.8 single sum annuity PV face PVinterest 0 KTZFIG Consulting and Sales Inc Cash Received/Annual Cash Payment Requirement The company could issue 500,000 additional shares of $1 par value common stock for $5.20 per share The company will begin paying a dividend to ALL the common shareholders of $0.13 per share and this will continue into the future. Cash Received $2,600,000 Annual Cash Required $65,000 number of existing shares number of new shares total shares at year end market price Dividend rate Dividend period PIC year end PIC> par year end not given 500000 500000 5.20 13 % 1 year 2600000 2100000 KTZFIG Consulting and Sales Inc Financial Ratios and Calculations The company could issue $2,500,000 of long-term bonds due in 7 years with a stated rate of interest, paid semiannually, of 6%. The market rate for similar debt is 4%. The company could issue 500,000 additional shares of $1 par value common stock for $5.20 per share The company will begin paying a dividend to ALL the common shareholders of $0.13 per share and this will continue into the future The company could issue $3,000,000 of long-term bonds, due in 8 years with a stated rate of interest, paid semiannually, of 4%. The market rate for similar debt is 6%. Ratios 9 Current Ratio 10 12 Current Assets 13 14 Current Liabilities 15 16 17 Debt to Asset Ratio 18 19 20 Total Debt 21 22 Total Assets 23 24 25 Return on Equity 26 27 Net Income 28 29 Total Equity 31 32 Return on Assets 4 Net Income 35 36 Total Assets 37 38
