Question

Question 4 Table 9-7 Given below are the balance sheet at December 31, 20X9 and income...

Question 4

  1. Table 9-7
    Given below are the balance sheet at December 31, 20X9 and income statement for the year ended, December 31, 20X9 for Hortense Company:

    Hortense Company
    Balance Sheet
    December 31, 20X9

    Current Assets: Current Liabilities:
    Cash $ 6,000 Accounts Payable $ 3,000
    Accounts Receivable 4,000 Wages Payable 2,000
    Inventory 14,000 Total Current Liabilities $ 5,000
    Total Current Assets 24,000 Long-term Bond Payable 24,000
    Total Liabilities $29,000
    Long-term Assets: Stockholders' Equity:
    Fixed Assets $60,000 Common Stock $ 12,000
    Accumulated Depr. (17,000) Retained Earnings 26,000
    Net Fixed Assets 43,000 Total Stockholders' Equity 38,000
    Total Assets $67,000 Total Liabilities & Equity $67,000

    Hortense Company
    Income Statement
    For The Year Ended December 31, 20X9

    Sales $240,000
    Cost of Goods Sold 103,000
    Gross Profit $137,000
    Operating Expenses 82,000
    Operating Income $ 55,000
    Interest Expense 2,000
    Income before Taxes $ 53,000
    Income Tax Expense 27,000
    Net Income $ 26,000


    Referring to Table 9-7, the long-term-debt-to-total-capital ratio for Hortense Company at December 31, 20X9, is

    38.71%.

    200.00%.

    35.82%.

    92.31%.

    63.16%.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Long-term-debt-to-total-capital ratio

= Long-term debt / Total capital

= Long-term bonds payable / (Long-term bonds payable + Total stockholders' equity)

= $24,000 / ($24,000 + $38,000)

= 38.71%

Therefore, the long-term-debt-to-total-capital ratio for Hortense Company at December 31, 20X9, is 38.71%.

Add a comment
Know the answer?
Add Answer to:
Question 4 Table 9-7 Given below are the balance sheet at December 31, 20X9 and income...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • mba 5180 Preparing a Classified Balance Sheet From the following accounts, listed in alphabetical order, prepare...

    mba 5180 Preparing a Classified Balance Sheet From the following accounts, listed in alphabetical order, prepare a classified balance sheet for Berkly Wholesalers as of December 31. $117,000 45,000 78,000 2,000 2 7,000 Accounts payable $43,000 Inventory Accounts receivable 40,000 Land Building 67,000 Mortgage payable (long term) Cash 26,000 Office supplies Common stock 111,000 Retained earnings Salaries payable Berkly Wholesalers Balance Sheet December 31, 2018 Assets Current Assets Cash 26,000 Accounts receivable 40,000 Inventory 117.000 Office supplies 2,000 Total Current...

  • Preparation of Balance Sheet Ari Company's December 31 post.closing trial balance contains the following normal balances:...

    Preparation of Balance Sheet Ari Company's December 31 post.closing trial balance contains the following normal balances: Cash $19,000 Accounts payable 20,000 Building 439,500 Long-term notes payable 785,000 Common stock 950,000 Retained earnings 75,000 Accumulated depreciation-Equipment 180,000 Land 877,000 Accounts receivable 22,500 Accumulated depreciation- Wages payable 6,000 Patent (net of amortization) Notes payable (short term) Inventory Equipment Allowance for doubtful accounts 2,000 con-- Building 135,000 Required Prepare a December 31 classified balance sheet Do not use negative signs with any of...

  • Preparation of Balance Sheet Ari Company's December 31 post-closing trial balance contains the following normal balances:...

    Preparation of Balance Sheet Ari Company's December 31 post-closing trial balance contains the following normal balances: Cash $19,000 Accounts payable 20,000 Building 439,500 Long-term notes payable 785,000 Common stock 950,000 Retained earnings 75,000 Accumulated depreciation-Equipment 180,000 Land 877,000 Accounts receivable 22,500 Accumulated depreciation-Building 135,000 Wages payable 6,000 Patent (net of amortization) 120,000 Notes payable (short term) 131,000 Inventory 206,000 Equipment 600,000 Allowance for doubtful accounts 2,000 Required Prepare a December 31 classified balance sheet for Ari Company Do not use...

  • Classified Balance Sheet The Werthman Company collected the following information for the preparation of its December...

    Classified Balance Sheet The Werthman Company collected the following information for the preparation of its December 31, 2013, classified balance sheet: Accounts Receivable $18,000 Property Plant and Equipment $200,000 Cash 20,000 Inventory 65,000 Other Current Assets 28,000 Other Long-Term Assets 43,000 Accounts Payable 24,000 Common stock 98,000 Long-Term Liabilities 58,000 Retained Earnings ? Other Current Liabilities 21,000 Prepare a classified balance sheet for Werthman Company. WERTHMAN COMPANY Balance Sheet December 31, 2013 Liabilities & Stockholders' Equity Current Liabilities: Assets Current...

  • Required information [The following information applies to the questions displayed below.) The December 31, Year 1,...

    Required information [The following information applies to the questions displayed below.) The December 31, Year 1, adjusted trial balance for a company is presented below. Credit Debit $ 10,700 137,000 4,700 23,500 270,000 Accounts Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Salaries Payable Interest Payable Notes Payable (due in two years) Common Stock Retained Earnings Service Revenue Salaries Expense Rent Expense Depreciation Expense Interest Expense Totals $ 122,000 10,700 9,700 3,700 27,000 170,000 47,000 370,000 270,000...

  • Freiman Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year...

    Freiman Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 170 $ 130 Accounts receivable, net 245 265 Inventory 130 140 Prepaid expenses 45 45 Total current assets 590 580 Plant and equipment, net 750 750 Total assets $ 1,340 $ 1,330 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 140 $ 160 Accrued liabilities 95...

  • Problem 5-4 Presented below is the balance sheet of Bramble Corporation as of December 31, 2017....

    Problem 5-4 Presented below is the balance sheet of Bramble Corporation as of December 31, 2017. BRAMBLE CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Goodwill (Note 2) Buildings (Note 1) Inventory Land Accounts receivable Treasury stock (50,000 shares) Cash on hand Assets allocated to trustee for plant expansion Cash in bank Debt investments (held-to-maturity) $ 123,840 1,640,000 315,940 950,000 173,840 90,840 179,740 73,840 141,840 $3,689,880 Equities Notes payable (Note 3) Common stock, authorized and issued, 1,000,000 shares, no par Retained...

  • Classified Balance Sheet The George Company collected the following information for the preparation of its December...

    Classified Balance Sheet The George Company collected the following information for the preparation of its December 31, classified balance sheet: Property Plant and Accounts Receivable $22,000 Equipment $200,000 Cash 17,000 Inventory 57,000 Other Long-Term Other Current Assets 25,000 Assets 40,000 Common Accounts Payable 25,000 stock 92,000 Retained Long-Term Liabilities 60,000 Earnings ? Other Current Liabilities 19.000 Prepare a classified balance sheet for George Company. GEORGE COMPANY Balance Sheet December 31 Assets Liabilities & Stockholders' Equity Current Assets: Current Liabilities: $...

  • LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2019 2020 Gross...

    LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2019 2020 Gross sales $19,000 1,000 $18,000 12,000 $6,000 $15,000 100 Sales returns and allowances Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research $14,900 9,000 $5,900 $ $ 2,000 500 600 700 2,200 550 Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes 360 300 $3,810 $ 2,190 $3,400 2,500 560...

  • can i pleasw have help on the comparative balance sheet Comparative Balance Sheet December 31, 2020...

    can i pleasw have help on the comparative balance sheet Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Assets Current Assets: Cash Accounts Receivable, Net Inventory (sunglasses) Prepaid Insurance Prepaid Rent Total Current Assets S $ $ $ $ $ 90,000 130,000 135,000 25,000 S $ $ S $ S 70,000 90,000 80,000 20,000 12,000 272,000 380,000 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment Total Assets $ $ $ $...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT