Longhorn Company Reported the Following Data at Year-End Calculate Each of the Following Ratios:
A

question 27

Short Answer

Longhorn Company reported the following data at year-end:
$$\begin{array} { l r } \text { Total stockholders' equity } & \$ 200,000 \\\text { Current liabilities } & 75,000 \\\text { Total assets } & 350,000 \\\text { Current assets } & 80,000 \\\text { Common stock (par } \$ 10 ) & 125,000\end{array}$$ Calculate each of the following ratios:
A.Debt to equity
B.Current ratio

Recognize the process and benefits of organizing accounts using the Chart of Accounts in accounting software.

Comprehend the structure and components of the Balance Sheet and Income Statement.

Analyze the effects of business transactions and events on owner's equity.

Apprehend the significance of account numbers in organizing financial information.

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Definitions:

Variable Costing

A costing method where variable manufacturing costs are treated as product costs, and fixed manufacturing overhead is treated as a period cost.

Net Income

The amount of earnings left after all expenses, including taxes and costs, have been subtracted from total revenue.

Fixed Overhead

Fixed overhead consists of the consistent, ongoing costs not directly tied to production levels within a business, such as rent, insurance, and salaries.

Inventory

Items held by a company for sale in the ordinary course of business or to be used in producing goods and services for sale.