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What is capital structure of ABC Company, based on the information in the table below? ABC Company Balance Sheet ASSETS LIABILITIES Cash 8,000 Accounts payable
What is capital structure of ABC Company, based on the information in the table below? ABC Company Balance Sheet ASSETS LIABILITIES Cash 8,000 Accounts payable 8,000 Receivables 3,000 Taxes payable 6,000 Inventory 5,000 Total current liabilities 14,000 Total current assets 16,000 Long-term debt 12,000 Net fixed assets 14,000 Total liabilities 26,000 Total equity 4,000 Total assets 30,000 Total liabilities and equity 30,000 Multiple Choice 80% debt and 20% equity 75% debt and 25% equity 87% debt and 13% equity Further to Question # 15, what would be ABC Company's return on equity if it had sales for the year of $10,000 and a profit margin of 20 percent? Multiple Choice 10% 20% 40% 50%
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