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Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand 5,000 Total Current Assets 70,000 Total Assets
Given the following Year 12 balance sheet data for a footwear company:
Balance Sheet Data | |||
Cash on Hand | 5,000 | ||
Total Current Assets | 70,000 | ||
Total Assets | 300,000 | ||
Overdraft Loan Payable | 3,000 | ||
1-Year Bank Loan Payable | 15,000 | ||
Current Portion of Long-Term Loans | 20,000 | ||
Total Current Liabilities | 55,000 | ||
Long-Term Bank Loans Outstanding | 100,000 | ||
Shareholder Equity: | Year 11 Balance | Year 12 Change | |
Common Stock | 10,000 | 0 | 10,000 |
Additional Capital | 110,000 | 0 | 110,000 |
Retained Earnings | 15,000 | 10,000 | 25,000 |
Total Shareholder Equity | 135,000 | +10,000 | 145,000 |
Based on the above figures and the formula for calculating the debt-assets ratio, the company's debt-assets ratio (where debt is defined to include both short-term and long-term debt) is | ||
0.127. | ||
0.45. | ||
0.33. | ||
0.40. | ||
0.46. |
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