PSU Manufacturing Inc. has the following financial statements data for 2012.
Cost of Goods $50,000
SG & E Expenses $35,000
Interest Expenses $2,500
Net Income $9,000
Fixes Assets $55,000
Total Assets $95,000
Accounts Payable $12,000
Long-term Debt $25,000
Retained Earnings $28,000
Paid-in Common Equity $30,000
Use the financial information and
a. Compute the firm’s debt ratio and current ratio
b. Is the firm profitable? Does the balance sheet balance? Explain.
c. If the firm paid $5,000 in dividends in 2012, what was its retained earning balance at the end of the 2009?
The question belongs to Finance and it is about calculating a firm’s debt ratio and current ratio, checking whether or not the firm is profitable and the balance sheet balances or not and to calculate the retained earnings of the firm, if it paid dividends in the year. These questions have been calculated in the solution.
Total Word Count 95