Question
Petersen, Inc. had the following balances on their balance sheet as of 12/31/20X4 (this is the complete balance sheet): Cash $ 50,000 Accounts Receivable 100,000
Petersen, Inc. had the following balances on their balance sheet as of 12/31/20X4 (this is the complete balance sheet): Cash $ 50,000 Accounts Receivable 100,000 Inventory 250,000 Fixed Assets (net) 500,000 Accounts Payable 220,000 Long Term Debt 180,000 Common Stock 100,000 Retained Earnings 400,000 a. How much is Petersens Net Working Capital as of the balance sheet date? b. What is Petersens Current Ratio? c. If Net Income for Petersen for 20X4 was $50,000, what was its Return on Assets? d. If Petersen has Earnings Before Taxes of $30,000 and a TIE Ratio of 7.0. What is its interest expense?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
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