Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed
Assets to Long-Term Liabilities
Recent balance...
Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed
Assets to Long-Term Liabilities
Recent balance sheet information for two companies in the food
industry, Santa Fe Company and Madrid Company, is as follows (in
thousands):
Santa Fe
Madrid
Net property, plant, and equipment
$299,760
$623,040
Current liabilities
258,839
786,135
Long-term debt
369,704
560,736
Other long-term liabilities
129,896
218,064
Stockholders' equity
161,370
306,850
a. Determine the ratio of liabilities to
stockholders' equity for both companies. Round to one decimal
place....
Current Assets 30,000,000 Current Liabilities 20,000,000
Fixed Assets 70,000,000 Notes Payable 10,000,000
Total Assets: 100,000,000 Long-term...
Current Assets 30,000,000 Current Liabilities 20,000,000
Fixed Assets 70,000,000 Notes Payable 10,000,000
Total Assets: 100,000,000 Long-term debt 30,000,000
Common Stock 1,000,000
Retained Earnings 39,000,000
Total liabilities & Equity 100,000,000
The notes payable are to banks, and the interest rate on this
debt is 7%, the same as the rate on new bank loans. These bank
loans are not used for seasonal financing but instead are part of
the company's permanent capital structure. The long-term debt
consists of 30,000 bonds, each...
Cleon’s, has sales of $47,000, current assets of $5,100, current
liabilities of $6,200, net fixed assets...
Cleon’s, has sales of $47,000, current assets of $5,100, current
liabilities of $6,200, net fixed assets of $51,500, and a profit
margin of 3 percent. The firm has no long-term debt and does not
plan on acquiring any, therefore, there are no interest expenses.
The firm does not pay taxes nor pay any dividends. Sales are
expected to increase by 5 percent next year. If all assets,
short-term liabilities, and costs vary directly with sales, how
much additional equity financing...
Cleon’s, has sales of $47,000, current assets of $5,100, current
liabilities of $6,200, net fixed assets...
Cleon’s, has sales of $47,000, current assets of $5,100, current
liabilities of $6,200, net fixed assets of $51,500, and a profit
margin of 3 percent. The firm has no long-term debt and does not
plan on acquiring any, therefore, there are no interest expenses.
The firm does not pay taxes nor pay any dividends. Sales are
expected to increase by 5 percent next year. If all assets,
short-term liabilities, and costs vary directly with sales, how
much additional equity financing...
Cleon’s, has sales of $47,000, current assets of $5,100, current
liabilities of $6,200, net fixed assets...
Cleon’s, has sales of $47,000, current assets of $5,100, current
liabilities of $6,200, net fixed assets of $51,500, and a profit
margin of 5 percent. The firm has no long-term debt and does not
plan on acquiring any, therefore, there are no interest expenses.
The firm does not pay taxes nor pay any dividends. Sales are
expected to increase by 4 percent next year. If all assets,
short-term liabilities, and costs vary directly with sales, how
much additional equity financing...
A firm has sales of $63,000, current assets of $13,000, current
liabilities of $14,500, net fixed...
A firm has sales of $63,000, current assets of $13,000, current
liabilities of $14,500, net fixed assets of $74,000, and a profit
margin of 7.50%. The firm has no long-term debt and does not plan
on acquiring any. The firm does not pay any dividends. Sales are
expected to increase by 4% next year. If all assets, short-term
liabilities, and costs vary directly with sales, how much
additional equity financing is required for next year?
A. $4,914
B. $2,000
C....