Respuesta :
Answer:
Net working capital = $104,200
Debt ratio = 0.21
Retained earning = $397,200 Â
Explanation:
The preparation of the balance sheet is presented below:
Assets
Current Assets
Cash$ 50,000
Accounts receivable $42,700
Inventories $40,000
Other current assets $5,000
Total current assets $137,700
Gross fixed assets 1,280,000
Less: Accumulated depreciation -$312,000
Net fixed assets $968,000
Other assets $15,000
Total assets $1,120,700
Liabilities
Current liabilities
Accounts payable $23,000
Short-term notes payable $10,500
Total current liabilities $33,500
Long-term debt 200,000
Total liabilities $233,500
Equity
Common stock 490,000
Retained earning $397,200 Â Â Â (Balancing figure)
Total equity $887,200
Total liabilities and owners equity $1,120,700
The computation is shown below:
Net working capital = Current assets - current liabilities
                 =  $137,700 - $33,500
                 = $104,200
And, the debt ratio would be
= Total liabilities ÷ Total assets
= $233,500 ÷ $1,120,700
= 0.21
