Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1...

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Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1...

Selected items from successive annual reports of Middlebrook, Inc., appear as follows.

	Year 2		Year 1
Total assets (40% of which are current)	$	471,000	$	385,000
Current liabilities	$	80,000	$	100,000
Bonds payable, 12%		100,000		50,000
Capital stock, $5 par value		100,000		100,000
Retained earnings		191,000		135,000
Total liabilities & stockholders' equity	$	471,000	$	385,000

Dividends of $16,000 were declared and paid in year 2.

a. Compute the current ratio for year 2 and year 1. (Round your answers to 1 decimal place.)

b. Compute the debt ratio for year 2 and year 1. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.)

c. Compute the earnings per share for year 2. (Round your answer to 2 decimal places.)

a	Current Ratio	to 1	to 1
b	Debt Ratio	%	%
c	Earning per Share

business accounting

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Answer 1

Answer #1

B12 AB E F G H 1 Total assets Current Assets Current liabilities Bonds payable, 12% Total Liabilities Capital stock, $5 par v

for formulas and calculations, refer to the image below -

B12 Year 2 Total assets 471000 Current Assets =D3*40% Current liabilities 80000 Bonds payable, 12% 100000 Total Liabilities =

In case you have any query, kindly ask in comments.

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Answer 2

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