Question

In: Accounting

MC Qu. 102 Charger Companys most recent... Charger Company's most recent balance sheet reports total assets...

MC Qu. 102 Charger Companys most recent...

Charger Company's most recent balance sheet reports total assets of $32,612,000, total liabilities of $19,462,000 and total equity of $13,150,000. The debt to equity ratio for the period is (rounded to two decimals):

Multiple Choice:

0.60

1.68

0.40

0.68

1.48

MC Qu. 108 Morgan Company issues...

Morgan Company issues 9%, 20-year bonds with a par value of $840,000 that pay interest semiannually. The current market rate is 8%. The amount paid to the bondholders for each semiannual interest payment is:

Multiple Choice:

$67,200.

$420,000.

$33,600.

$37,800.

$75,600.

Solutions

Expert Solution

Debt to Equity ratio is the ratio of its total liabilities to its total equity.

Debt to Equity Ratio = Total Liabilities / Equity

a)Total liabilities = $ 19462000

b)Total Equity = $ 13150000

Debt to Equity ratio (a/b) = 1.48

Answer is 1.48

Interest paid to the bondholders for each semiannual payment =840000*9%*1/2

                                                                                                      =37800

Answer is $ 37800


Related Solutions

Saffron Industries most recent balance sheet reports total assets of $42,000,000, total liabilities of $16,000,000 and...
Saffron Industries most recent balance sheet reports total assets of $42,000,000, total liabilities of $16,000,000 and stockholders' equity of $26,000,000. Management is considering using $3,000,000 of excess cash to prepay $3,000,000 of outstanding bonds. What effect, if any, would prepaying the bonds have on the company's debt-to-equity ratio? Remember that the Debt-to-Equity Ratio is: Total Liabilities / Total Stockholder's Equity Group of answer choices Prepaying the debt would cause the firm's debt-to-equity ratio to worsen from .62 to .57. Prepaying...
Rajan Company's most recent balance sheet reported total assets of $1.98 million, total liabilities of $0.76...
Rajan Company's most recent balance sheet reported total assets of $1.98 million, total liabilities of $0.76 million, and total equity of $1.22 million. Its Debt to equity ratio is: 0.47 0.38 1.61 0.62 1.00
You are examining a company's balance sheet and find that it has total assets of $21,156,...
You are examining a company's balance sheet and find that it has total assets of $21,156, a cash balance of $2,424, inventory of $5,169, current liabilities of $6,341 and accounts receivable of $2,935. What is the company's net working capital? Multiple Choice $4,187 $1,763 $982 $6,151 $14,815
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $204,000 and...
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $204,000 and Total Liabilities of $78,500. During the year, the company reported total revenues of $237,000 and expenses of $183,500. Also, owner withdrawals during the year totaled $50,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be: Multiple Choice $176,000. $129,000. $201,500. $123,000. $126,000.
At the beginning of the year, a company's balance sheet reported the following balances: Total Assets...
At the beginning of the year, a company's balance sheet reported the following balances: Total Assets = $165,000; Total Liabilities = $24,300; Total Paid-in capital of $56,700; and Retained earnings = $84,000. During the year, the company reported revenues of $49,600 and expenses of $32,400. In addition, dividends for the year totaled $21,600. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be:
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $294,000 and...
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $294,000 and Total Liabilities of $113,500. During the year, the company reported total revenues of $347,000 and expenses of $268,500. Also, owner withdrawals during the year totaled $70,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be: Multiple Choice $189,000. $256,000. $186,000. $296,500. $183,000.
Carriveau Corporation's most recent balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets:...
Carriveau Corporation's most recent balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 41 $ 30 Accounts receivable 38 26 Inventory 51 65 Total current assets 130 121 Property, plant, and equipment 772 551 Less accumulated depreciation 283 262 Net property, plant, and equipment 489 289 Total assets $ 619 $ 410 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 56 $ 71 Accrued liabilities 21 18 Income taxes...
Complete the​ common-size balance sheet for these companies. Review each​ company's percentages of total assets. Are...
Complete the​ common-size balance sheet for these companies. Review each​ company's percentages of total assets. Are these companies operating with similar philosophies or in similar​ industries? What appears to be the major difference in financing for these two​ companies? % of % of % of % of Balance Total Balance Total Balance Total Balance Total ASSETS Co. 1 Assets Co. 2 Assets LIABILITIES Co. 1 Assets Co. 2 Assets Current assets Current liabilities Cash $5,304 % $291 % Accounts payable...
MC Qu. 168 Alvez reports net income... Alvez reports net income of $352,500 for the year...
MC Qu. 168 Alvez reports net income... Alvez reports net income of $352,500 for the year ended December 31. It also reports $118,400 depreciation expense and a $12,850 loss on the sale of equipment. Its comparative balance sheet reveals a $51,600 increase in accounts receivable, a $13,050 decrease in prepaid expenses, a $19,950 increase in accounts payable, a $16,300 decrease in wages payable, a $95,900 increase in equipment, and a $128,500 decrease in notes payable. Calculate the net increase in...
Prezas Company's balance sheet showed total current assets of $2,750, all of which were required in...
Prezas Company's balance sheet showed total current assets of $2,750, all of which were required in operations. Its current liabilities consisted of $975 of accounts payable, $600 of 6% short -term notes payable to the bank, and $250 of accrued wages and taxes. What was its net operating working capital? A. $1,281 B. $1,525 C. $1,190 D. $1,235 E. $1,586
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT