Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Kahluha Manufacturers Inc. reported the following information in its financial statements (10marks) KAHLUHA MANFACTURERS INC. Statement of Financial Position June 30 Assets 2023 2022 $32,000
Kahluha Manufacturers Inc. reported the following information in its financial statements (10marks) KAHLUHA MANFACTURERS INC. Statement of Financial Position June 30 Assets 2023 2022 $32,000 [$29,000 7,500 5,500 1,100 1,450 ******** SER *************** Cash Accounts receivable Prepaid Insurance Inventory Building Equipment Total Assets Liabilities and shareholders' equity Accounts Payable Notes Payable Bonds Payable Long-Term Debt Common shares 220,000 175,000 145,000 155,000 ....................... 36,000 40,000 $441,600 $405.950 $14,500 $ 12,500 10,000 0 145,000 95,000 116.000 175,000 25.000 25,000 ***** Building ................. 145,000 155,000 Equipment 36,000 40,000 Total Assets $441,600 $405,950 Liabilities and shareholders' equity Accounts Payable $ 12,500 $14,500 Notes Payable 10,000 0 Bonds Payable 145,000 95,000 Long-Term Debt 116,000 1175,000 Common shares 25,000 25,000 Retained earnings 133,100 96,450 Total liabilities and shareholders' equity $441,600 $405 950 Revenue $450,000 $300,000 Operating expenses 300.000 210,000 Income from operations 150,000 90,000 Interest expense 6,000 9,000 Income tax expense 36.000 _ 20.250 Net income $108.000 $60,750 Instructions (a) Calculate the company's debt to total assets and times interest earned ratios for each year (8 marks) (b) Determine if the change from 2022- 2023 is an improvement or deterioration. (2 marks) ***
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started