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  3. please compute the short-term solvency or liquidit

Please compute the short-term solvency or liquidity ratios and long-term solvency or financial leverage ratios...

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Accounting

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Please compute the short-term solvency or liquidity ratios and long-term solvency or financial leverage ratios including coverage ratios MOOSE TOURS, INC. 2006 Income Statement Sales $905,000 Costs 710,000 Other expenses 12.000 Earnings before interest and taxes $183,000 Interest paid 19.700 Taxable income $163.300 Taxes (35%) 57.155 Net income $106,145 Dividends $42.458 Addition to retained earnings 63,687 MOOSE TOURS, INC. Balance Sheet as of December 31, 2006 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 25,000 Accounts payable $ 65,000 Accounts receivable 43.000 Notes payable 9,000 Inventory 76.000 Total $ 74,000 Total $144,000 Long-term debt $156,000 Fixed assets Owners' equity Common stock and paid-in surplus $ 21,000 257,000 Net plant and equipment $364,000 Retained earnings Total $278,000 Total assets $508,000 Total liabilities and owners' equity $508,000

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