Reference no: EM132846987
Question - Hello Professor, could you please help me with this question? Much appreciated. Have a wonderful day.
Computing Balance Sheet Components
Describe the specific elements of the balance sheet (assets, liabilities, and owners' equity), and make a balance sheet with assets and liabilities properly classified into current and noncurrent categories.
Analyze a company's performance and financial position through the computation of financial ratios.
Denton Equipment Inc. furnishes you with the following list of accounts.
Accounts Payable $66,000
Accounts Receivable 40,000
Accumulated Depreciation 44,000
Advances to Salespersons 10,000
Advertising Expense 72,000
Allowance for Bad Debts 10,000
Bonds Payable 80,000
Cash 22,000
Certificates of Deposit 16,000
Common Stock (par) 100,000
Deferred Income Tax Liability 46,000
Equipment 215,500
Inventory 55,000
Investment in Rowe Oil Co. Stock (40% of outstanding stock owned for control purposes) 76,500
Investment in Siebert Co. Stock (trading securities) 21,000
Paid-In Capital in Excess of Par 42,500
Premium on Bonds Payable 6,000
Prepaid Insurance 6,000
Rent Revenue 37,000
Rent Revenue Received in Advance (4 months) 12,000
Retained Earnings 97,500
Taxes Payable 10,000
Tools 52,000
Required -
1. From the preceding list of accounts, determine working capital, total assets, total liabilities, and owners? Equity per share of stock (75,000 shares outstanding).
2. Assume net income of $20,000. Compute current ratio, debt ratio, and return on equity?