Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please solve this question. Question # 3 From the following Balance Sheet of Example Company, for the year ended 31 December 2019: (a) Calculate the

Please solve this question.

image text in transcribed
Question # 3 From the following Balance Sheet of Example Company, for the year ended 31 December 2019: (a) Calculate the amount of capitalization, capital structure and financia structure and explain its interpretation. (b) Extract necessary financial ratios with interpretation. Example Company Balance Sheet December 31, 2019 ASSETS LIABILITIES Current assets Current liabilities Cash $ 2,100 Notes payable 5,000 Petty cash 100 Accounts payable 35,900 Temporary investments 10,000 Wages payable 8,500 Accounts receivable . net 40.500 Interest payable 2,900 Inventory 31,000 Taxes payable 6,100 Supplies 3,800 Warranty liability 1,100 Prepaid insurance 1.500 Unearned revenues 1,500 Total current assets 89,000 Total current liabilities 61,000 Investments 36.000 Long-term liabilities Notes payable 20,000 Property, plant & equipment Bonds payable 400,000 Land 5,500 Total long-term liabilities 420,000 Land improvements 6.500 Buildings 180,000 Equipment 201,000 Total liabilities 481,000 Less: accum depreciation (56,000) Prop, plant & equip - net 337,000 Intangible assets STOCKHOLDERS' EQUITY Goodwill 105.000 Common stock 110,000 Trade names 200,000 Retained earnings 220,000 Total intangible assets 305,000 Accum other comprehensive income 9,000 Less: Treasury stock (50,000) Other assets 3,000 Total stockholders' equity 289,000 Total assets $ 770.000 Total liabilities & stockholders' equity $ 770,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Precalculus

Authors: Jay Abramson

1st Edition

1938168348, 978-1938168345

Students also viewed these Finance questions