Question

Assume that XY Company has Owner’s equity of Birr 100,000 and the following ratios
are computed from the financial statement of the company.  Current liabilities to total debt ----------0.40
 Total debt to owners’ equity ------------0.60
 Fixed assets to owners’ equity ----------0.60
 Total asset turnover ratio -----------------2 times
Instruction:
a) What is the amount of fixed asset to be reported on the balance sheet of XY Company for the period?
b) What is the amount of current liability to be reported on the balance sheet of XY Company for the period?
c) What is the amount of long-term debt to be reported on the balance sheet of XY Company for the period?

Answer 1

Answer:

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