Our company holds $200,000 in accounts payable and $100,000 in accounts receivable. Additionally, the firm has $200,000 in inventories and $600,000 in land and equipment,
Our company holds
$200,000
in accounts payable and
$100,000
in accounts receivable. Additionally, the firm has
$200,000
in inventories and
$600,000
in land and equipment, a long-term bank loan of
$100,000
and has issued a long-term bond for
$300,000
. Finally, the company has net income
150,000$
and 30,000 shares outstanding that currently sell for
25$
each.\ Carefully create the Balance Sheet of the firm.\ Estimate the current and therquick ratio.\ What is the net working capital of the firm?\ Estimate the total debt ratio, the debt-to-equity ratio, and the equity multiplier.\ Estimate the price-earnings ratio and the market-to-book ratio.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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