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Use the following information to answer the questions: Assets Liabilities and Equity Cash 13,000 Accounts payable 17,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable
Use the following information to answer the questions:
Assets | Liabilities and Equity | |||
Cash | 13,000 | Accounts payable | 17,000 | |
Marketable securities | 2,000 | Notes payable | 6,000 | |
Accounts receivable | 3,000 | Current liabilities | 23,000 | |
Inventory | 24,000 | Long-term debt | 95,000 | |
Current assets | 42,000 | Total liabilities | 118,000 | |
Machines | 34,000 | Paid-in capital | 20,000 | |
Real estate | 80,000 | Retained earnings | 18,000 | |
Net fixed assets | 114,000 | Equity | 38,000 | |
Total assets | 156,000 | Total liab. & equity | 156,000 |
Line item | Value |
Sales | 69,000 |
- Costs | 56,580 |
- Depreciation | 2,000 |
= EBIT | 10,420 |
- Interest | 800 |
= Taxable income | 9,620 |
- Taxes | 3,175 |
= Net income | 6,445 |
Part 1: What is the total debt to total capital ratio?
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