Question
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. December 31 Year
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2.
| December 31 | Year 1 | Year 2 |
|---|---|---|
| Cash | $ 47,111 | $ 7,883 |
| Accounts receivable | 25,572 | 20,049 |
| Office supplies | 4,034 | 2,955 |
| Office equipment | 123,828 | 131,900 |
| Trucks | 48,455 | 57,455 |
| Building | 0 | 161,530 |
| Land | 0 | 40,308 |
| Accounts payable | 67,230 | 33,344 |
| Note payable | 0 | 101,838 |
Compute the Year 2 year-end debt ratio.
Debt RatioNumerator: The total liabilities are :
What is the/Denominator: pick one
Average accounts receivable, net
Average total assets
Cost of goods sold
Current assets
Current liabilities
Interest expense
Net sales
Total assets
Total liabilities
Debt RatioTotal liabilities/
=Debt ratio/=0
total:
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The Re Emergence Of Global Finance
Authors: G. Burn
1st Edition
023000198X, 978-0230001985
