Problem - Ratio of Liabilities to Stockholder Equity

Assignment Help Accounting Basics
Reference no: EM132679290

Problem - Ratio of Liabilities to Stockholder's Equity

The following data were taken from White Company's balance sheet:

 

Dec. 31, 2012

Dec. 31, 2011

Total liabilities

$375,000

$287,500

Total stockholders' equity

300,000

250,000

Required -

a. Compute the ratio of liabilities to stockholders' equity.

b. Has the creditor's risk increased or decreased from December 31, 2011 to December 31, 2012?

Reference no: EM132679290

Questions Cloud

Complete a comprehensive risk analysis : Complete a comprehensive risk analysis and stakeholder management plan based on your proposals put forward in Assessment
How do calculate the depreciation expense for each year : Wildhorse Pants Company, Using the double diminishing-balance method, calculate the depreciation expense for each year of the equipment's life.
What eliminating entry a debit of goodwill are : What PC's journal entry to record this acquisition includes a credit to additional paid in capital? Eliminating entry a debit of goodwill are?
Which statements is not a general characteristic of year-end : Which statements is not a general characteristic of year-end published accounts? The financial information they contain is the bare minimum required
Problem - Ratio of Liabilities to Stockholder Equity : Problem - Ratio of Liabilities to Stockholder's Equity. Has the creditor's risk increased or decreased from December 31, 2011 to December 31, 2012
Advise mohammad what expenses he can claim : Advise Mohammad what expenses he can claim for the 2017-2018 financial year and Advise Mohammad what expenses he can claim for the 2018-2019 financial year
Change views regarding risk and return : Individuals and business enterprises can change their views of both desired return and desired risk over time. Please provide in a description as well explained
Find the projects ninv for the project : Allied Food Products, Calculate the cash net flow for years 1-3 and terminal cash flow for year 4. Find the projects NINV for the project
Make a statement of cash flows for Escape Travel Service : Cash paid for operating expenses 912,500. Make a statement of cash flows for Escape Travel Service for the year ended November 30, 2012

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd