The accounting records of Arroya Foods, Inc., include the following items at December 31, 2018: (Click the icon to view the accounting records.) Read the requirements. Requirement 1. Show how each relevant item would be reported on the Arroya Foods classified balance sheet. Include headings and totals for current liabilities and long-term liabilities. Select the labels and then enter the amounts to complete the classified balance sheet. You will need to determine the total current assets value from the information provided and your calculations. (Abbreviations used: liab. = liabilities, NP = notes payable, and pay. = payable.) Read the requirements. Assets Arroya Foods, Inc. Partial Balance Sheet December 31, 2018 Liabilities Current liabilities: Interest payable Mortgage NP, current Bonds pay., current portion Total current liabilities Long-term liabilities: 77,000 96,000 125,000 298000 Property, plant, and equipment: 311,000 Equipment 784,000 168,000 Mortgage NP, long-term Bonds pay., long-term 616000 Less: Discount on bonds pay. 225,000 25,000 Less: Accumulated depreciation 200000 616000 Total assets Total liabilities 511000 Choose from any list or enter any number in the input fields and then continue to the next question. 784,00 168,00 Current assets: Current liabilities: Long-term liabilities: Noncurrent assets: Property, plant, and equipment: Total assets Total current assets Total current liabilities Total liabilities Total liab. and stockholders' equity Total long-term liabilities Total noncurrent assets Total stockholders' equity per in the ing Data Table ......$ 5,500,000 $ 96,000 440,000 225,000 168,000 Mortgage note payable, current portion ... Leases payable (long-term).... Bonds payable, long-term .... Mortgage note payable long-term Bonds payable, current portion. Interest expense........ Total assets.... Accumulated depreciation, equipment .. Discount on bonds payable (all long-term) Operating income... Equipment Long-term investments (market value) Interest payable. 311,000 125,000 229,000 25,000 380,000 784,000 430,000 77.000 Print Done Requirement 2. Answer the following questions about Arroya Food's financial position at December 31, 2018: a. What is the carrying amount of the bonds payable (combine the current and long-term accounts)? $ 325000 b. Why is the interest payable amount so much less than the amount of interest expense? Interest payable is the company's cost of borrowing for the full year. Interest expense is the amount of interest that the company owes at year-end. Requirement 3. How many times did Arroya Foods cover its interest expense during 2018? (Round your answer to two decimal places. Arroya covered its interest expense 1.66 times. Requirement 2. Answer the following questions about Arroya Food's financial position at a. What is the carrying amount of the bonds payable (combine the current and long-term b. Why is the interest payable amount so much less than the amount of interest expense? Interest payable is the company's cost of chorrowing for the full year. Interest expense is the amount of interest that the company owes at year-end. company's cost of borrowing for the full year. Requirement 3. Hown 1187 Requirement 4. Assume that all of the existing liabilities are included in the information provided. Calculate the leverage ratio and debt ratio of the company. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this problem. Evaluate the health of the company from a leverage point of view. Assume the company only has common stock issued and outstanding. What other information would be helpful in making your evaluation? Begin by computing the leverage ratio. Select the formula for the leverage ratio. Then complete the formula and calculate the leverage ratio. (Round your answer to two decimal places.) Average total assets Average common stockholders' equity = Leverage ratio answer to two decimal places.) Now, select the formula for the debt ratio. Then complete the formula and calculate Total liabilities : Total assets 2108 Evaluate the health of the company from a leverage point of view. What other information making your evaluation? (Round the ratio to two decimal places.) The company's debt ratio and leverage ratios are With this limited information, the company appears to be , and operating income cov risk from a leverage would also be helpful. J UL ULUR luuuu ulu Outduruny. Vilal Uwer O by computing the leverage ratio. Select the formula fc S.) Average total assets te the sets Average common stockholders' equity se av Average total assets Long-term liabilities Total current assets Total current liabilities luate Total liabilities int of v e company's debt ratio and leverage ratios are th this limited information, the company appears to be WO of the financial statements includes commitments for opera how would it change the leverage ratio and the debt ratio y had to capitalize leases amounting to $3,100,000. (Rount ckholders' equity = Leverage ratio ad to d you Debti now be considered high risk. now be considered really low risk. still be considered healthy (average risk) om a le would from a leverag continue to the next question. NOV 13 any had to capitalize these leases in 2017 ege point of view? e leverage ratio assuming that the compa ssets Average common sto the deb mpany ha decrease. = De increase. our asse remain the same. jealth from a I would would The company would any number in the input fields and then contin The accounting records of Arroya Foods, Inc., include the following items at December 31, 2018: (Click the icon to view the accounting records.) Read the requirements. Requirement 1. Show how each relevant item would be reported on the Arroya Foods classified balance sheet. Include headings and totals for current liabilities and long-term liabilities. Select the labels and then enter the amounts to complete the classified balance sheet. You will need to determine the total current assets value from the information provided and your calculations. (Abbreviations used: liab. = liabilities, NP = notes payable, and pay. = payable.) Read the requirements. Assets Arroya Foods, Inc. Partial Balance Sheet December 31, 2018 Liabilities Current liabilities: Interest payable Mortgage NP, current Bonds pay., current portion Total current liabilities Long-term liabilities: 77,000 96,000 125,000 298000 Property, plant, and equipment: 311,000 Equipment 784,000 168,000 Mortgage NP, long-term Bonds pay., long-term 616000 Less: Discount on bonds pay. 225,000 25,000 Less: Accumulated depreciation 200000 616000 Total assets Total liabilities 511000 Choose from any list or enter any number in the input fields and then continue to the next question. 784,00 168,00 Current assets: Current liabilities: Long-term liabilities: Noncurrent assets: Property, plant, and equipment: Total assets Total current assets Total current liabilities Total liabilities Total liab. and stockholders' equity Total long-term liabilities Total noncurrent assets Total stockholders' equity per in the ing Data Table ......$ 5,500,000 $ 96,000 440,000 225,000 168,000 Mortgage note payable, current portion ... Leases payable (long-term).... Bonds payable, long-term .... Mortgage note payable long-term Bonds payable, current portion. Interest expense........ Total assets.... Accumulated depreciation, equipment .. Discount on bonds payable (all long-term) Operating income... Equipment Long-term investments (market value) Interest payable. 311,000 125,000 229,000 25,000 380,000 784,000 430,000 77.000 Print Done Requirement 2. Answer the following questions about Arroya Food's financial position at December 31, 2018: a. What is the carrying amount of the bonds payable (combine the current and long-term accounts)? $ 325000 b. Why is the interest payable amount so much less than the amount of interest expense? Interest payable is the company's cost of borrowing for the full year. Interest expense is the amount of interest that the company owes at year-end. Requirement 3. How many times did Arroya Foods cover its interest expense during 2018? (Round your answer to two decimal places. Arroya covered its interest expense 1.66 times. Requirement 2. Answer the following questions about Arroya Food's financial position at a. What is the carrying amount of the bonds payable (combine the current and long-term b. Why is the interest payable amount so much less than the amount of interest expense? Interest payable is the company's cost of chorrowing for the full year. Interest expense is the amount of interest that the company owes at year-end. company's cost of borrowing for the full year. Requirement 3. Hown 1187 Requirement 4. Assume that all of the existing liabilities are included in the information provided. Calculate the leverage ratio and debt ratio of the company. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this problem. Evaluate the health of the company from a leverage point of view. Assume the company only has common stock issued and outstanding. What other information would be helpful in making your evaluation? Begin by computing the leverage ratio. Select the formula for the leverage ratio. Then complete the formula and calculate the leverage ratio. (Round your answer to two decimal places.) Average total assets Average common stockholders' equity = Leverage ratio answer to two decimal places.) Now, select the formula for the debt ratio. Then complete the formula and calculate Total liabilities : Total assets 2108 Evaluate the health of the company from a leverage point of view. What other information making your evaluation? (Round the ratio to two decimal places.) The company's debt ratio and leverage ratios are With this limited information, the company appears to be , and operating income cov risk from a leverage would also be helpful. J UL ULUR luuuu ulu Outduruny. Vilal Uwer O by computing the leverage ratio. Select the formula fc S.) Average total assets te the sets Average common stockholders' equity se av Average total assets Long-term liabilities Total current assets Total current liabilities luate Total liabilities int of v e company's debt ratio and leverage ratios are th this limited information, the company appears to be WO of the financial statements includes commitments for opera how would it change the leverage ratio and the debt ratio y had to capitalize leases amounting to $3,100,000. (Rount ckholders' equity = Leverage ratio ad to d you Debti now be considered high risk. now be considered really low risk. still be considered healthy (average risk) om a le would from a leverag continue to the next question. NOV 13 any had to capitalize these leases in 2017 ege point of view? e leverage ratio assuming that the compa ssets Average common sto the deb mpany ha decrease. = De increase. our asse remain the same. jealth from a I would would The company would any number in the input fields and then contin