Smith Company Has Total Assets, Liabilities, and Shareholders' Equity of $22,000

question 59

Essay

Smith Company has total assets, liabilities, and shareholders' equity of $22,000, $7,000, and $15,000, respectively, at the beginning of 2017. At the end of 2017, total assets, liabilities, and shareholders' equity were reported at $20,000, $5,000, and $15,000, respectively.
A. How much additional debt can Smith incur and still have its debt/equity ratio remain less than or equal to 1.00?
B. What information does the debt/equity ratio provide you?

Understand the concept of gene families and the evolution of gene duplications.

Understand the concept of sequence alignment and the significance of gaps, insertions, and substitutions.

Comprehend the process of inferring evolutionary relationships based on observed sequence variations.

Grasp the procedures for aligning DNA sequences and the importance of correcting for multiple and parallel substitutions.