The balance sheet for Stuart Corporation follows:Current assetsLong-term assets (net)Total assetsCurrent liabilitiesLong-term liabilitiesTotal liabilitiesCommon stock and retained earningsTotal liabilities and stockholders' equityWorking capitalCurrent ratioDebt-to-assets ratioDebt-to-equity ratio$ 238,000770,000$1,008,000RequiredCompute the following. (Round "Ratios" to 1 decimal place.)%144,000441,000585,000423,000$1,008,000

Working capital - Working capital of a company is the difference between current assets & the…

Answered: Required Compute the following. (Round…

Required Compute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio Debt-to-assets ratio Debt-to-equity ratio %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 6BE

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Concept explainers

Vertical Statement Analysis

Vertical statement analysis is a financial statements analysis tool that is used to establish a correlation between the base item and every line item in the financial statements. In vertical statement analysis, each line item in financial statements is reflected as a percentage of the base item. In the income statement, each line item is represented as a percentage of the gross turnover because gross turnover is considered as a base figure in income statement analysis. In the balance sheet, each line item is reflected as a percentage of total assets or liabilities.

Question

The balance sheet for Stuart Corporation follows:
Current assets
Long-term assets (net)
Total assets
Current liabilities
Long-term liabilities
Total liabilities
Common stock and retained earnings
Total liabilities and stockholders' equity
Working capital
Current ratio
Debt-to-assets ratio
Debt-to-equity ratio
$ 238,000
770,000
$1,008,000
Required
Compute the following. (Round "Ratios" to 1 decimal place.)
%
144,000
441,000
585,000
423,000
$1,008,000

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