Question

Alden Corp. has the following balances as of December 31, 2019: Total Assets Total Liabilities Total Equity $91,000 69,000 22,000 Calculate the debt to equity ratio. (Round your answer to two decimal points.) O A. 0.32 O B. 2.82 OC. 3.14 O D. 4.14

OPTIONS ARE:

Net income for 2019 was $23,000.Compute the rate of return on common​ stockholders' equity for 2019.​ (Round your final answer to two decimal​ places.)

Answer 1

Debt Equity Ratio = Total outsiders Liability/Total share holders Equity Answer 1 Option a b C Total Liability/total Outsiders equity Total Equity Debt Equity Ratio (a/b) $ 69,000.00 $ 22,000.00 3.14 Times Answer 2 Match the key term to definitions Key term Option 1 Stock Certificate 2 Preemptive Right Definitions Paper evidence of ownership in a corporation Stockholders right to maintain their proportionate ownership in the corporation The maximum number of shares of stock that the corporate charter allows the corporation to issue. Stock that gives its owners certain advantages over common stockholders. Represents amounts received from stockholders of a corporation in exchange for stock 3 Authorized stock 4 Preferred stock 5 Paid in capital

Answer 3 Option Corporation sells 9000 shares for $10 per share for $156000, so TRUE $90000 DR $ 1,56,000.00 Common stock is credited for Journal entry Cash /Bank Common stock CR Paid in capital in excess of Par value (Being common stock sold entry) $ 90,000.00 CR $ 66,000.00 O/Malley Issue 90000 shares in exchange of equipment Answer 4 Option 0.05 Number shares issued 90000 shares Equipment fair value $ 14,80,000.00 Stock par value per share $ Journal entry Common stock value $ 4,500.00 Cash $ 14,75,500.00 Equipment account $ 14,80,000.00 (being stock issued in exchange of common stock)

Standard electronics.... Answer 6 Option a b C d e Rate of return on common stock Total liability $ 3,30,000.00 Stock holders equity $ 2,43,000.00 Total Liability $ 5,73,000.00 Total Asset $ 5,73,000.00 Net income $ 23,000.00 Rate of return on common stock = Net income / Stock holders equity fund Rate of return on common stock (e/b) 9.47% Shelcal Inc. Provides .. Answer 7 Option b Percentage of Cost of good sold to sales revenue Net sales revenue $ 4,27,730.00 cost of good sold $ 2,58,000.00 Percentage of Cost of good sold to sales revenue = Cost of good sold / Sales revenue Percentage of Cost of good sold to sales revenue (b/a) 60.32%

Financial statement of Uptown service company Answer 8 Option a b C d $ 52,500.00 $ 33,000.00 $ 59,000.00 $ 1,64,000.00 e Working Capital Current Assets Cash Short term investments Net account receivable Merchandise inventory Total Current Assets (Total) A Current Liability Account payable Salary payable Total Current Liability (Total) B Working Capital = Working Capital (A-B) $ 3,08,500.00 f g $ $ 1,31,500.00 16,000.00 h $ 1,47,500.00 Current asset - Current liability $ 1,61,000.00

Acid test Ratio / Quick ratio Answer 9 Option b C d $ 50,500.00 $ 26,000.00 $ 52,000.00 $ 1,31,000.00 A $ 2,59,500.00 e f Current Assets Cash Short term Investments Net account receivable Merchandise inventory Total Current Assets (Total) A Current Liability Account payable Salary payable Total Current Liability (Total) B Acid Test Ratio = Quick Asset = Quick Asset (A-d) Current Liability (B) Quick Ratio/ Acid test ratio (g/h) $ $ 1,32,500.00 16,000.00 B $ 1,48,500.00 Quick asset / Current Liability Current Asset - Inventory $ 1,28,500.00 $ 1,48,500.00 & h $ 0.87

Account receivable turnover ratio Answer 10 Option Account receivable Turn over ratio = Credit sales / Account receivable for the period a Credit sales $ 2,90,000.00 b Account receivable 2019 $ 1,38,000.00 Account receivable Turn over ratio (a/b) c 2.10 Times