Question

#39

Category	Prior year	Current year
Accounts payable	41,400	45,000
Accounts receivable	115,200	122,400
Accruals	16,200	13,500
Additional paid in capital	200,000	216,660
Cash	???	???
Common Stock @ par value	37,600	42,000
COGS	131,400	179,491.00
Depreciation expense	21,600	22,711.00
Interest expense	16,200	16,465.00
Inventories	111,600	115,200
Long-term debt	135,000	137,482.00
Net fixed assets	379,278.00	399,600
Notes payable	59,400	64,800
Operating expenses (excl. depr.)	50,400	63,373.00
Retained earnings	122,400	136,800
Sales	255,600	336,291.00
Taxes	9,900	18,708.00

What is the current year's entry for long-term debt on a common-sized balance sheet?

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Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Answer 1

Total liabilities = Accounts payable + Accruals + Notes payable + Long-term debt
Total liabilities = $45,000 + $13,500 + $64,800 + $137,482
Total liabilities = $260,782

Total equity = Common stock + Additional paid-in capital + Retained earnings
Total equity = $42,000 + $216,660 + $136,800
Total equity = $395,460

Total liabilities and equity = Total liabilities + Total equity
Total liabilities and equity = $260,782 + $395,460
Total liabilities and equity = $656,242

Total assets = Total liabilities and equity
Total assets = $656,242

Long-term debt on a common-sized balance sheet = Long-term debt / Total assets
Long-term debt on a common-sized balance sheet = $137,482 / $656,242
Long-term debt on a common-sized balance sheet = 20.95%