Question

Required: Based upon what you find, answer the following questions: A. For Discount Goods, do liabilities or shareholders' equity provide the greater proportion of the company's total assets? B. For Big Store, do liabilities or shareholders' equity provide the greater proportion of the company's total assets? C. Which of the two companies has the highest ratio of current liabilities to total liabilities? What is the ratio for that company? (Round your answer to the nearest whole percent.) D. Which of the two companies has the highest ratio of current assets to current liabilities? What is the ratio for that company? (Round your answer to the nearest whole percent.) provide the greater proportion of the company's assets. provide the greater proportion of the company's assets. A. For Discount Goods B. For Big Store C. For current liabilities to total liabilities D. For current assets to current liabilities liabilities liabilities Big Store Discount Goods reported the highest ratio of reported the highest ratio of

Answer 1

Balance Sheet of Discount Goods 2021

Particiulars	Amount	Particulars	Amount
Shareholders' Equity	69130	Noncurrent Assets	106571
Noncurrent Liabilities	73358	Current Assets	78225
Current Liabilites	42308
Total	184796		184796

Balance Sheet of Big Store 2021

Particiulars	Amount	Particulars	Amount
Shareholders' Equity	66296	Noncurrent Assets	113905
Noncurrent Liabilities	41677	Current Assets	45996
Current Liabilites	51928
Total	159901		159901

A. For Discount Goods, liabilities provide the greater proportion of the company's Assets

B. For Big Store, liabilities provide the greater prportion of Company's Assets

C. For Current liabilities to total liabilities,

For Discount Goods Ratio = Current Liabilities / Total Liabilities

                                       = 42308 / (73358 + 42308)

                                      = 42308/115666

                                      = 0.3658

                                      = 37%

For Big Store Ratio = Current Liabilities / Total Liabilities

                             = 51928 / (41677 + 51928)

                              = 51928/93605

                              = 0.5548

                             = 55%

For Current liabilities to total liabilities, Big Store reported the highest ratio of 55 %

D. For Current Assets to Current Liabilities

For Discount Goods Ratio = Current Assets / Current Liabilites

                                      = 78225/42308

                                       = 1.85

                                       = 185%

For Big Store Ratio = Current Assets / Current Liabilites

                                      = 45996 / 51928

                                      = 0.8858

                                      = 89%

For Current Assets to Current liabilities, Discount Goods reported the highest ratio of 185%