Question
The Zumwalt Corporation has $1,200,000 in total assets in 2018. Claims are as follows: Accruals$100,000 AccountsPayable50,000 NotesPayable150,000 Long-termDebt250,000 PreferredStock50,000 CommonStock50,000 Capital in Excess ofPar150,000 RetainedEarnings400,000
The Zumwalt Corporation has $1,200,000 in total assets in 2018. Claims are as follows:
Accruals$100,000
AccountsPayable50,000
NotesPayable150,000
Long-termDebt250,000
PreferredStock50,000
CommonStock50,000
Capital in Excess ofPar150,000
RetainedEarnings400,000
TotalClaims$1,200,000
Assuming Zumwalt does not consider notes payable to be part of its capital structure, what proportionate allocations, expressed as percentages rounded to a single decimal,does the firm give each component of capital?
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
