Question
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.
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