Question
The latest balance sheet of Princess Panda Pink Pet Pillows shows: Current Assets: 1872 Total Liabilities: 1756 Inventory: 597 Net Working Capital: 525 Total Assets:
The latest balance sheet of Princess Panda Pink Pet Pillows shows:
Current Assets: 1872 Total Liabilities: 1756 Inventory: 597 Net Working Capital: 525 Total Assets: 5920 Total Equity: 1029 Total Debt: 3956 Earnings per Share: 3.5 Market Value: 62.07 You want to identify if the company is highly leveraged and therefore a higher risk for you as an investor. Specifically, you want to find out how much debt the company has in comparison to each dollar of equity. Determine which ratio to use, calculate it, multiply it by 5 and use the result as your answer.
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