Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show changes to the 2012 pro forma balance sheet assuming the company borrows the necessary funds for the capital improvements at an interest rate of

Show changes to the 2012 pro forma balance sheet assuming the company borrows the necessary funds for the capital improvements at an interest rate of 7 percent. Thats all the information I was giving. Trying to show what the interest rate of 7%

Assets

Calculations

Liabilities and Owners Equity

Calculations

Cash and Marketable Securities

Notes payable

Accounts Receivable

Accounts payable

Inventory

Accrued expenses

Current Assets

Current liabilities

Gross Fixed Assets

Long-term debt

Accumulated Depreciation

Common Stock ($10 par)

Net fixed assets

Retained earnings

Total assets

Total liabilities and owners equity

Price earnings ratio 16
current ratio 1.8
quick ratio 0.6
total debt ratio 53
total asset turnover ratio 1.5
return on equity 8
return on sales 2.5
Average collection period

27

Assets

Liabilities and equity

Cash anf marketbale securities 16,000 Notes paybale 0
acoounts receivable 16,000
invenotry 23,000 Accounts paybale 19,500
current assests 55,000
gross fixed assets 52,000 accrued 6,000
accmulated depreciation -12,000 current liabilties 25,500
long term debt 0
net fixed assets 40,000 common stock ($10 par) 40,000
total assets 95,000 Retianed earnings 29,500
Total liabilties and equity 95,000

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

Auditing Principles

Authors: Nformi Eugene Tawe

1st Edition

3330651032, 978-3330651036

More Books

Students also viewed these Accounting questions