Question
Prepare a balance sheet from the following information. What is the net working capital and debt ratio? DATA Cash $50,000 Account receivables 42,700 Accounts payable
Prepare a balance sheet from the following information. What is the net working capital and debt ratio?
DATA
Cash $50,000
Account receivables 42,700
Accounts payable 23,000
Short-term notes payable 10,500
Inventories 40,000
Gross fixed assets 1,280,000
Other current assets 5,000
Accumulated depreciation 312,000
Long-term debt 200,000
Common stock 490,000
Other assets 15,000
Retained earnings ?
SOLUTION Balance Sheet:
Cash
Accounts receivable
Inventories
Other current assets
Total current assets
Gross fixed assets
Accumulated depreciation
Net fixed assets
Other assets
Total assets
Notes payable
Accounts payable
Total current liabilities
Long-term debt
Total liabilities
Common stock
Retained earnings
Total equity
Total liabilities and equity
Net Working Capital
Debt Ratio
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
