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The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average Income Statement Sales Expenses Earnings before interest
The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average Income Statement Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $400,000 336, 100 $ 63,900 3,900 $ 60,000 12,000 $ 48,000 $ 24,000 Assets Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet Liabilities and Sharebolders' Equity $5,000 Accounts payable $15,900 29,000 Accrued wages 3,100 34,000 Accrued taxes 17,000 $68,000 Current liabilities $36,000 89,000 Notes payable 8,900 Long-term debt 24,500 Common stock 39,000 Retained carnings 48,600 $157,000 Total liabilities and equity $157,000 Total assets b. Prepare a pro foma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Do not leave any empty spaces; input a O wherever it is required.) Balance Sheet Liabilities $ Current assets (Click to select) (Click to select) (Click to select) (Click to select) Click to select) Click to select) Current afeta $ (Click to select) Current liabilities (Click to select) (Click to select) (Click to select) (Click to select) $ Total assets $ Total liabilities and equity c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.) Year 1 Year 2 x Current ratio Total debt/ assets The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average Income Statement Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $400,000 336, 100 $ 63,900 3,900 $ 60,000 12,000 $ 48,000 $ 24,000 Assets Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet Liabilities and Sharebolders' Equity $5,000 Accounts payable $15,900 29,000 Accrued wages 3,100 34,000 Accrued taxes 17,000 $68,000 Current liabilities $36,000 89,000 Notes payable 8,900 Long-term debt 24,500 Common stock 39,000 Retained carnings 48,600 $157,000 Total liabilities and equity $157,000 Total assets b. Prepare a pro foma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Do not leave any empty spaces; input a O wherever it is required.) Balance Sheet Liabilities $ Current assets (Click to select) (Click to select) (Click to select) (Click to select) Click to select) Click to select) Current afeta $ (Click to select) Current liabilities (Click to select) (Click to select) (Click to select) (Click to select) $ Total assets $ Total liabilities and equity c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.) Year 1 Year 2 x Current ratio Total debt/ assets
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