Given Below Are the Balance Sheet at December 31,20X3 and Income
Question 183
Question 183
Essay
Given below are the balance sheet at December 31,20X3 and income statement of Zeus Company for the year ended,December 31,20X3.Determine the following: (a)The debt-to-equity ratio (b)Long-term-debt-to-total-capital ratio (c)Debt-to-total-assets ratio (d)The interest-coverage ratio. Zeus Company Balance Sheet December 31,20×3
Current Assets: Cash Accounts Receivable Inventory Total Fixed Assets Less: Accum. Depr. Fixed Assets, net Total Assets $3,3005,90011,100$20,300$59,300(13,800)45,500$65,800 Current Liabilities: Accounts Payable Interest Payable Wages Payable Total Current Liabilities Long-term Bond Payable Total Liabilities Stockholders’ Equity: Common Stock Retained Earnings Total Liabilities & Stockholders’ Equity $12,00010,300$$65,800$4,9001,5002,100$8,50035,000$43,50022,300
Zeus Company Income Statement For The Year Ended December 31, 20X3
Sales Cost of Goods Sold Gross Profit Operating expenses Operating income Interest expense Income before taxes Income tax expense Net Income $94,00051,000$43,00035,000$8,000$3,000$5,000$2,300$2,700
Correct Answer:
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(a)Debt-to-equity ratio is $43,500/$22,3...
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