Make sure you scroll down to the bottom of each worksheet until you see "End of Question _". This will ensure you've answered all parts! Below is an excerpt of Walker and Co.'s account balances as well as their market price share and dividends paid per share. Th M Walker Land Co. is considering expanding. In order to qualify for a bank loan they must have a minimum current ratio of 1.10 and a maximum debt to equity ratio of 3.0. They also want to assess their current dividend yield to see if it is comparable to other companies in their industry. 5 Required: Calculate the current ratio, debt to equity ratio and dividend yield. 6 7 Walker Land Co. 8 Account Balances 9 2021 2021 10 Cash $ 134,700 Current Assets 11 Accounts Receivable 208,785 Current abilities 12 inventory 10,195 Current Ratio 13 Prepaid Expenses 1,608 14 JPP&E (net) 935,000 2021 15 Accounts Payable 90,100 Net Debit 6 Unearned Revenues 4,700 Shareholders' equity 7 Current portion of bank loan 200,000 Debt to Equity Ratio 3 Long Term Bank Loan 870,388 Share Capital 192,023 2021 Retained Earnings 125,100 Dividends/share Market Price/share s 11.11 Price/share Dividends/share $ 0.28 Dividend yield ys 7E e 25 Critical Thinking: Is Walker Land Co. meeting their bank's obligations for their current ratio? Why or why not? + 6 7 8 Critical Thinking: Is Walker Land Co. meeting their bank's obligations for their debt to equity ratio? Why or why not? 31 The average dividend yield in Walker Land Co.'s industry is 2.0%. Comment on how their dividend yield compares to the industry. 32 33 34 Discuss one advantage of debt financing and one advantage of equity financing that Walker Land Co. should consider when they are expanding, 5 5