1900 Balance Sheet in Millions Liabilities andOwners Equity Sales 700 Cost of

# 1900 balance sheet in millions liabilities andowners

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1900 Balance Sheet (\$ in Millions) Liabilities andOwners' Equity Sales 700 Cost of Goods Sold 700 Administrative Expenses 100 Depreciation 348 Earnings Before Interest and Taxes -448 Interest Expense 100 Taxable Income -548 Taxes -172 Net Income -376 Dividends 0 Addition to Retained Earnings -376 Number of Shares Outstanding (Milions) 200 Price per Share 1.24 Income Statement (\$ in Millions) Other Information In the answer boxes below, select the right answer from the drop-down menu. Each answer is worth 2 points. Answers are rounded to two decimals. Ratio Answer Days Sales in Inventory 260.71 Average Collection Period 104.29 Debt to Equity Ratio 2.17 AR Turnover 3.5 Current Ratio 1.71 To find the Days Sales in Inventory: Days in Sales Inventory: (500 Inventory/700 COGS) x 365
10. On December 31, 2015, Panettone Inc. has total liabilities of \$555,500 and total equity of \$1,049,500. The company needs to raise additional funds through debt and equity. The company will issue 4,000 shares of common stock at \$13.25 per share and in addition it intends to borrow as much as it can from Bank of Switzerville. Bank of Switzerville requires a maximum debt-to-asset ratio of 0.64. What is the maximum additional amount that the company can borrow after the additional stock is issued?
11. RZM Store sells jeans. During January 2014, its inventory records for one brand of designer jeans were as follows:QuantityPrice perpairTotalBeginning Inventory10 pairs\$20= \$200January 6 Purchase4 pairs\$25=\$100January 10 Sale5 pairsN/AJanuary 15 Purchase7 pairs\$30=\$210January 20 Sale10 pairsN/AJanuary 25 Purchase 4 pairs\$30=\$120Using this information, periodic FIFO cost of goods sold is? \$330