Question
Using the balance sheet below, calculate the return on assets and the debt-to-equity ratio for the year ended 12/31/2020 and 12/31/2021. Total assets at the
Using the balance sheet below, calculate the return on assets and the debt-to-equity ratio for the year ended 12/31/2020 and 12/31/2021. Total assets at the end of 2019 were $652,307. Net income for 2020 was $98,720, and net income for 2021 was $142,700.
| ABC, Inc. | ||
| Balance Sheet | ||
| December 31, 2021 | ||
| 12/31/2020 | 12/31/2021 | |
| Assets: | ||
| Cash | $ 8,795 | $ 9,882 |
| Accounts Receivable | 5,683 | 4,357 |
| Supplies | 412 | 850 |
| Inventory | 14,201 | 12,341 |
| Equipment | 215,100 | 365,100 |
| Buildings | 187,500 | 187,500 |
| Land | 250,110 | 250,110 |
Total Assets
Total Liabilties
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
$ 681,801
$ 140,951
$ 540,850
$ 681,801
$ 830,140
$ 278,988
$ 551,152
$ 830,140
| Liabilities: | ||
| Accounts Payable | $ 6,952 | $ 8,544 |
| Notes Payable | 14,200 | 12,100 |
| Wages Payable | 7,433 | 5,144 |
| Unearned Service Revenue | 12,366 | 3,200 |
| Bonds Payable | 100,000 | 250,000 |
| Stockholders' Equity: | ||
| Common Stock (20,000 shares, $5 par value) | $ 100,000 | $ 100,000 |
| Paid in excess of par value, common stock | 140,000 | 140,000 |
| Retained Earnings | 300,850 | 311,152 |
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