Accounting Financial Ratios in Balance Sheets
See attached
Financial ratios
Shown below are some key figures from the balance sheets of AA Company for two successive years:
December 31, 2000 December 31, 1999
Total assets (of which 30% are current) $4,000,000 $3,000,000
Current liabilities 320,000 400,000
Bonds payable (long term) 1,500,000 1,200,000
Capital stock, $10 par value 1,000,000 1,000,000
Retained earnings 1,180,000 400,000
Dividends of $50,000 were declared and paid in 2000. compute the following:
Current ratio at end of 1999 ___________to 1
Current ratio at end of 2000 ____________to 1
Working capital at end of 1999 $__________
Working capital at end of 2000$___________
Debt ratio at end of 1999__________%
Debt ratio at end of 2000 __________%
Earnings per share for 2000 $___________
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Solution Preview
Calculate current assets: 2000: CA=0.3*4,000,000=1,200,000; 1999, CA=0.3*3,000,000=900,000
Current ratio at end of 1999 = current assets /Current liabilities=900,000/400,000= 2.25 to 1
Current ratio at end of 2000 = current assets /Current ...
Solution Summary
The accounting financial ratios in balance sheets are found. The total assets and current liabilities are given.