Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Swifty had total debt of $ 496,800 and $ 738,400 as at December 31, 2020, and December 31, 2019, respectively, of which $ 120,000 and
Swifty had total debt of $ 496,800 and $ 738,400 as at December 31, 2020, and December 31, 2019, respectively, of which $ 120,000 and $ 165,000 was current. In addition, the company had total assets of $ 920,000 and $ 710,000 as at December 31, 2020, and December 31, 2019, respectively, of which $ 125,000 and $ 150,000 was current. Evaluate the companys debt-paying ability in 2020 and 2019.
2020 2019 % % Debt-paying ability by calculating the debt to total assets ratio: (Round answers to decimal places, e.g. 500%.) Debt-paying ability by calculating current ratio: (Round answers to 2 decimal places, e.g. 45.50.) :1 :1Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started