Question
Question 4 Table 9-7 Given below are the balance sheet at December 31, 20X9 and income statement for the year ended, December 31, 20X9 for
Question 4
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Table 9-7 Given below are the balance sheet at December 31, 20X9 and income statement for the year ended, December 31, 20X9 for Hortense Company: Hortense Company Balance Sheet December 31, 20X9 Current Assets: Current Liabilities: Cash $ 6,000 Accounts Payable $ 3,000 Accounts Receivable 4,000 Wages Payable 2,000 Inventory 14,000 Total Current Liabilities $ 5,000 Total Current Assets 24,000 Long-term Bond Payable 24,000 Total Liabilities $29,000 Long-term Assets: Stockholders' Equity: Fixed Assets $60,000 Common Stock $ 12,000 Accumulated Depr. (17,000) Retained Earnings 26,000 Net Fixed Assets 43,000 Total Stockholders' Equity 38,000 Total Assets $67,000 Total Liabilities & Equity $67,000 Hortense Company Income Statement For The Year Ended December 31, 20X9 Sales $240,000 Cost of Goods Sold 103,000 Gross Profit $137,000 Operating Expenses 82,000 Operating Income $ 55,000 Interest Expense 2,000 Income before Taxes $ 53,000 Income Tax Expense 27,000 Net Income $ 26,000 Referring to Table 9-7, the long-term-debt-to-total-capital ratio for Hortense Company at December 31, 20X9, is
38.71%.
200.00%.
35.82%.
92.31%.
63.16%.
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