Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q1. Using the financial statement below, please find out the following financial ratios and comment of the financial heath of the organization based on each

Q1. Using the financial statement below, please find out the following financial ratios and comment of the financial heath of the organization based on each ratio:

  • Current Ratio
  • Debt to Equity
  • Shareholder Equity Ratio (Equity as % of total)

image text in transcribed

Assets Current Assets Cash Accounts Receivable Prepaid Rent Inventory Balance Sheet December 31, 2015 Liabilities Current Liabilities 32,800 Accounts Payable 300 Accrued Expenses 1,000 Unearned Revenue 39,800 Total Current Liabilities Long-term Liabilities 73,900 Total Liabilities Owner's Equity Owner's Equity Retained Earnings 98,000 Common Stock 98,000 Total Owner's Equity 171,900 Total Liabilities and Owner's Equity 49,000 450 1,000 50,450 99,500 149,950 Total Current Assets Long-term Assets Leasehold Improvements Accumulated Depreciation Total Long-term Assets 100,000 (2.000) 11,950 10,000 21,950 Total Assets: 171.900

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Principles Of Managerial Finance

Authors: Lawrence J. Gitman, Chad J. Zutter

13th Edition

9780132738729, 136119468, 132738724, 978-0136119463

More Books

Students also viewed these Finance questions

Question

How many states do not have a sales tax?

Answered: 1 week ago

Question

1. What is meant by Latitudes? 2. What is cartography ?

Answered: 1 week ago