Question Question 4 Question 5 Question 6 Given the following Year 12 balance sh

Question

Question Question 4 Question 5 Question 6 Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand Total Current Assets Total Assets Overdraft Loan Payable 1-Year Bank Loan Payable Current Portion of Long-Term Loans Total Current Liabilities Long-Term Bank Loans Outstanding 5,000 70,000 300,000 3,000 15,000 20,000 55,000 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 100,000 Year 11 Year 12 Balance Change 8 Shareholder Equity: Common Stock Additional Capital Retained Earnings Total Shareholder Equity Question 14 10,000 10,000 15,000 0,000 0 110,000 25,000 35,000 +10,000 145,000 & Question 15 Question 16 Question 17 Question 18 Question 19 10,000 Based on the above figures and the formula for calculating the debt-assets ratio, the company'sQues debt-assets ratio (where debt is defined to include both short-term and long-term debt) is - 0,46 O No Answer

Explanation / Answer

Answer:

Debt Assets ratio=0.46

working notes for the above answer is as under

Debt Assets ratio

=(Short term debt+ Long term Debt)/ Total assets

Short term debt

= Overdraft Loan Payable+ 1-Year Bank Loan Payable+ Current Portion of Long-Term Loans

=3000+15000+20,000

=38,000

Short term debt =$38,000

Debt Assets ratio

=(Short term debt+ Long term Debt)/ Total assets

=(38000+100,000) /300,000

=138,000/300,000

=0.46

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