6. Silo\'s Balance Sheet, as of December 31 (thousands of dollars) 2013 10 2013

Question

6. Silo's Balance Sheet, as of December 31 (thousands of dollars) 2013 10 2013 15 Cash Accts Receivable Accounts Payable Bank Loan Accrued Taxes 25 Inventory 1 Long-term debt, current portion Current Liabilities Long-term Debt (mortgage Common Stock (10,000 shares) Additional paid-in capital 38 Retained Earnings Total Liabilities & Equity 225 12 57 Current Assets 25 Net Plant & Equip. 100 200 10 20 Total Assets 225 iven the information provided above, calculate Silo's total debt ratio a. 25 b. .33 e. 70 2.0N

Explanation / Answer

Answer ) Debt ratio = Total Liabilities / Total Asset = (Total Liabilities & Equity - Total equity ) / Total asset

= (225-(10+38+20)) / 225 = 225-68 / 225 = 157/225 = 0.70

Option b)

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