Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
From the balance sheet: Cash $ 30,000 Accounts Receivable 150,000 Inventory 200,000 Plant assets 500,000 Current liabilities 150,000 Total stockholders' equity 300,000 Total Assets 880,000
From the balance sheet: Cash $ 30,000 Accounts Receivable 150,000 Inventory 200,000 Plant assets 500,000 Current liabilities 150,000 Total stockholders' equity 300,000 Total Assets 880,000 From the income statement: Net sales $1,500,000 Cost of goods sold 1,080,000 Operating expenses 315,000 Interest expense 84,000 Income taxes expense 6,000 Net Income after tax 15,000 From the statement of cash flows: Net cash provided by operating activities (including interest paid of $79,000) $40,000 Net cash used in investing activities ($46,000) Financing activities: Amounts borrowed $50,000 Repayments (14,000) Dividends paid (20,000) Net cash provided by Financing activities 16,000 Net increase in cash during the year $ 10,000 f. Discuss (1) the apparent safety of long-term creditors' claims and (2) the prospects for Duncan continuing its dividend payments at the present level
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669ba9e3d3450_603669ba9e34d36e.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669ba9e4783a7_604669ba9e418486.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
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](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started