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The 2013 and 2014 Partial Balance Sheets for Myers Manufacturing

Question 157

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The 2013 and 2014 partial balance sheets for Myers Manufacturing Company appear below:
20132014Current Assets$56,000$52,000Long-term Assets110,000120,000Total Assets166,000172,000Current Liabilities30,00040,000Noncurrent Liabilities70,00080,000Total Liabilities100,000120,000Stockholders’ Equity  Common Stock12,00012,000  Additional Paid-In Capital14,00014,000  Retained Earnings40,00026,000Total Stockholders’ Equity66,00052,000Total Liabilities and Stockholders’ Equity$166,000$172.000\begin{array}{lrr}& \underline{2013} & \underline{2014} \\\text{Current Assets} & \$ 56,000 & \$ 52,000 \\\text{Long-term Assets} & \underline{110,000} & \underline{120,000} \\\text{Total Assets} & \underline{\underline{166,000}} & \underline{\underline{172,000}} \\\\\text{Current Liabilities} & 30,000 & 40,000 \\\text{Noncurrent Liabilities} & \underline{70,000} & \underline{80,000} \\\text{Total Liabilities} & 100,000 & 120,000 \\\text{Stockholders' Equity} \\\text{~~Common Stock} & 12,000 & 12,000 \\\text{~~Additional Paid-In Capital} & 14,000 & 14,000 \\\text{~~Retained Earnings} & \underline{40,000} & \underline{26,000} \\\text{Total Stockholders' Equity} & \underline{66,000} & \underline{52,000} \\\text{Total Liabilities and Stockholders' Equity} & \underline{\underline{\$166,000}} & \underline{\underline{\$172.000}} \\\end{array}
a.Calculate Myers' current ratio for 2014.
b.Calculate Myers' debt ratio for 2014.
c.Calculate Myer's debt-to-equity ratio for 2014.

Correct Answer:

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a.$52,000/$40,000 = ...

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