Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Given the following data for XYZ Corporation for the year ending December 31, 2023: Description Amount ($) Cash 120,000 Accounts Receivable 250,000 Inventory 180,000 Other
Given the following data for XYZ Corporation for the year ending December 31, 2023:
Description | Amount ($) |
Cash | 120,000 |
Accounts Receivable | 250,000 |
Inventory | 180,000 |
Other Current Assets | 70,000 |
Total Current Assets | 620,000 |
Property, Plant & Equipment (Net) | 1,050,000 |
Total Assets | 1,670,000 |
Accounts Payable | 230,000 |
Short-term Debt | 150,000 |
Long-term Debt | 300,000 |
Other Liabilities | 90,000 |
Total Liabilities | 770,000 |
Common Stock | 400,000 |
Retained Earnings | 500,000 |
Total Equity | 900,000 |
Total Liabilities and Equity | 1,670,000 |
Requirements:
- Calculate the Current Ratio.
- Calculate the Debt to Equity Ratio.
- Compute the Net Working Capital.
- Determine the Return on Equity (ROE) if the net income is $150,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started