Question
You are establishing a new subsidiary for your company.You believe that the subsidiary will generate sales of $15 million, and will conform to the industry
You are establishing a new subsidiary for your company.You believe that the subsidiary will generate sales of $15 million, and will conform to the industry ratios listed below the balance sheet.What will the balance sheet entries be?
Cash500,000Wages Payable250,000
A/RN/P_________________________
Inventory______________ TCL
TCALTD________________________
NFA__________________ Total Debt
TAS/E_________________________
TL&SE
Industry Ratios:
Current Ratio4
Quick Ratio2
Price/Earnings12
Market/Book2
TCL/SE.20
Total Asset TO3
Times Int. Earned 4
Debt Ratio.50
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77861671, 978-0077861674
