Solution-Compute the ratio of liabilities to stockholders

Compute the ratio of liabilities to stockholders equity

Assignment Help Managerial Accounting

Reference no: EM132748236

Problem - Ratio of liabilities to stockholders' equity - The following data were taken from Mesa Company's balance sheet:

	Dec. 31, 20Y6	Dec. 31, 20Y5
Total liabilities	$547,800	$518,000
Total stockholders' equity	415,000	370,000

Required -

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

b. Has the creditor's risk increased or decreased from December 31, 20Y5, to December 31, 20Y6?

Reference no: EM132748236

Questions Cloud

Should dispatch delivery service record the interest payment : Josh paid interest of $4,500 on a personal loan of $75,000 that he used to begin the business. Should Dispatch Delivery Service record the interest payment

Compare these methods of data collection by listing : Compare these methods of data collection by listing and describing the advantages and disadvantages of each method.

Determine the amount of retained earnings as of July : Received invoice for paralegal services from Legal Aid Inc. for July (to be paid on August 10), $1,635. Determine the amount of retained earnings as of July

Learning strategy development and implementation : Learning Strategy Development and Implementation - Determine what education is needed for new hires, and what is needed for long-term employees.

Compute the ratio of liabilities to stockholders equity : Compute the ratio of liabilities to stockholders' equity. Has the creditor's risk increased or decreased from December 31, 20Y5, to December 31, 20Y6

Focus for information governance efforts : With this detail in mind, briefly state why the e-Mail has become a critical component for IG implementation?

At what value should the land be recorded : On January 9 of the next year, Kountry Repair was offered $300,000 for the land by a national retail chain. At what value should the land be recorded

Regression analysis to business situation. : Consider how we can apply regression analysis to a business situation. Let's take company sales as an example.

Special risk management issues : Chapter 18 presented special risk management issues with Blue Wood Chocolates, and chapter 19 presented various financial risks at Kilgore Custom Milling.

User Account

All Pages

Compute the ratio of liabilities to stockholders equity

Reference no: EM132748236

Reference no: EM132748236

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT