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Don't understand how to get these values for a balance sheet. Can someone explain and show step by step please AMS Inc. bought land and
Don't understand how to get these values for a balance sheet. Can someone explain and show step by step please
AMS Inc. bought land and built its plant 10 years ago. Land is not depreciated. The depreciation on the building and plant is calculated using the straight-line method with a life of 30 years and a salvage value of $500,000. The depreciation for the equipment, all which was purchased at the same time the plant was constructed and is calculated using declining balance method with depreciation rate of 6%. Complete the balance sheet below and find: The value for the total assets The value for the preferred shares The value for the acid-test ratio The value for the return on equity ratio I don't understand how to get the values to then put into the ratio's formulas. Can some explain and show step by step on how to achieve these numbers. Answers: Total assets: $9,577,230 Preferred Shares 1,327,230 Acid Test ratio 1.489 Return on Equity Ratio 0.2505Step by Step Solution
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