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Given the following information for Blue Bell Company for last year: Net sales (all on account) $5,200,000 Cost of goods sold 2,080,000 Interest expense 240,000
Given the following information for Blue Bell Company for last year:
Net sales (all on account) | $5,200,000 | |
Cost of goods sold | 2,080,000 | |
Interest expense | 240,000 | |
Income tax expense | 280,000 | |
Net income | 420,000 | |
Income tax rate | 40% | |
Total assets: | ||
January 1 | $1,800,000 | |
December 31 | 2,400,000 | |
Shareholders' equity (all common): | ||
January 1 | 1,500,000 | |
December 31 | 1,600,000 | |
Current assets, December 31 | 700,000 | |
Quick assets, December 31 | 400,000 | |
Current liabilities, December 31 | 300,000 | |
Net accounts receivable: | ||
January 1 | 200,000 | |
December 31 | 180,000 | |
Inventory: | ||
January 1 | 210,000 | |
December 31 | 250,000 |
Refer to Exhibit 4-1. Blue Bell's debt to assets ratio December 31 was
26.2%
16.7%
42.8%
33.3%
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