Measuring Ability to Pay Liabilities
LeBronson's Companies Balance Sheet May 31, 2018 and 2017LeBronson's companies has 10,000 common shares outstanding during2018
Assets Liabilities 2018 2017 2018 2017 Cash 2,400 900.00 Total Current Liabilties 28,000 13,200 Short-Term Investments 28,000 9,000 Long-Term Liabilities 13,900 10,300 Accounts Receivable 7,500 5,200 Total Liabilities 41,900 23,500 Merchandise Inventory 6,900 8,600 Stockholder's Equity Other Current Assets 8,000 1,500 Common Stock 11,000 11,000 Total Current Assets 52,800 25,200 Retained Earnings 29,900 19,700 All Other Assets 30,000 29,000 Total Equity 40,900 30,700 Total Assets 82,800 54,200 Total Liabilities and Equity 82,800 54,200
Calculating these objectives
A. Calculate the debt ratio and the debt to equity ratio at May31, 2018, for LeBronson's Companies.
B. Is LeBronson's ability to pay its liabilities good or bad?Explain your decision or findings.
Measuring Ability to Pay Liabilities
LeBronson's Companies Balance Sheet May 31, 2018 and 2017LeBronson's companies has 10,000 common shares outstanding during2018
| Assets | Liabilities | ||||
| 2018 | 2017 | 2018 | 2017 | ||
| Cash | 2,400 | 900.00 | Total Current Liabilties | 28,000 | 13,200 |
| Short-Term Investments | 28,000 | 9,000 | Long-Term Liabilities | 13,900 | 10,300 |
| Accounts Receivable | 7,500 | 5,200 | Total Liabilities | 41,900 | 23,500 |
| Merchandise Inventory | 6,900 | 8,600 | Stockholder's Equity | ||
| Other Current Assets | 8,000 | 1,500 | Common Stock | 11,000 | 11,000 |
| Total Current Assets | 52,800 | 25,200 | Retained Earnings | 29,900 | 19,700 |
| All Other Assets | 30,000 | 29,000 | Total Equity | 40,900 | 30,700 |
| Total Assets | 82,800 | 54,200 | Total Liabilities and Equity | 82,800 | 54,200 |
Calculating these objectives
A. Calculate the debt ratio and the debt to equity ratio at May31, 2018, for LeBronson's Companies.
B. Is LeBronson's ability to pay its liabilities good or bad?Explain your decision or findings.
Related questions
ASSETS 2018 2017 | LIABILITIES 2018 2017 |
Cash 2,400900.00 | Total CurrentLiabilities 28,000 13,200 |
Short Term Invest. 28,000 9,000 | Long-termLiabilities 13,900 10,300 |
Accounts Receivable 7,500 5,200 | TotalLiabilities 41,900 23,500 |
Merchandise Inventory 6,900 8,600 | Stockholdersâ Equity |
Other Current Assets 8,000 1,500 | CommonStock 11,000 11,000 |
Total Current Assets 52,800 25,200 | Retained Earnings29,900 19,700 |
All Other Assets 30,000 29,000 | Total Equity 40,90030,700 |
TotalAssets $82,800 $54,200 | Total Liabilities andEquity 82,800 54,200 |
Exercise is Computing EPS and P/E Ratio
Figure out
A. Compute Earnings per share (EPS) for 2018 for LeBronson's .Round to the nearest cent.
B. Compute LeBronson's Companies' price/earnings ratio for 2018.The market price per share of Lebronson's stock is $12.50.
C. What do these results mean when evaluating LeBronson'sCompanies' profitability?
I tried to build a chart with the first total 2018 and thesecond being 2017 to the right. Trying to get the correct formulaand ratios down.
