Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. wildhorse aristocrat nc.(wa) borrowed $210,000 fro

Wildhorse Aristocrat nc.(WA) borrowed $210,000 from Grow Business Bank to finance the purchase of equipment...

90.2K

Verified Solution

Question

Accounting

Wildhorse Aristocrat nc.(WA) borrowed $210,000 from Grow Business Bank to finance the purchase of equipment costing $157,500
and to provide $52,500 in cash. The legal documentation states that the loan matures in 20 years, and the principal is to be paid in
annual instalments of $10,500. The terms of the loan also indicate that WA must maintain a current ratio of 1.25 and cannot pay
dividends that will reduce retained earnings below $105,000. The 2024 year-end statement of financial position, immediately prior to
the bank loan and the purchase of equipment, follows:
Prepare the following statement of financial position assuming the maximum divided is declared and paid.
Current Assets
Non-current Assets
Total Assets
$
$
Current Liabilities
Long-term Liabilities
Common Shares
Retained Earnings
Total Liabilities and Shareholder's Equity
$
$
Calculate the current ratio using the updated statement of financial position. (Round answer to 2 decimal places, e.g.7.25.)
Current ratio
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

1. An engineer collected the data below showing the speed, s, of a Toyota Camry and...

Biology
1.2K views

Question 8 Points 1 In aH bO CH 0 which of the following corresponds to...

Basic Math
1.2K views

Vertical Curves Given g 3 82 2 L 500 VPI Station of 100 00 Calculate...

Calculus
1.2K views

Evaluate the indefinite integral 3e 3e sin e dr UL Davidan M Message instru ctol

Calculus
1.2K views

d if the relation is a function 1 8 1 4 5 1 The relation...

Accounting
1.2K views

[The following information applies to the...

Accounting
1.2K views

When a rating scale is used to evaluate performance, who usually completes the form

Accounting
1.2K views

5-29 Activity-based costing. The job-costing system at Sheri's Custom Framing has five indirect-cost pools (purchasing,...

Accounting
1.2K views

Taxable income $0 - $50,000 $50,001 - $75,000 $75,001 - $100,000 $100,001 - $335,000 $335,001...

Accounting
1.2K views

Please answer all the following questions.

Accounting
1.2K views

Locate the financial information for a company that has only domestic manufacturing operations. Assume management...

Finance
1.2K views

A pension fund manager is considering three mutual funds. The first is a stock fund,...