Financial Managment
bkaneh
campbell_industries.docx
The liability and owners’ equity for Campbell Industries is found here:
Account Receivable -$523,000
Notes payable- $247,000
Current Liabilities- $770,000
Long term debt- $1,276,000
Common Equity - $5,041,000
Total Liabilities & Equity - $7,087,000
(a) What percentage of the firm’s assets does the firm finance using debt (liability)?
(b) If Campbell were to purchase a nw warehouse for $1.2 million and finance it entirely with long-term debt, what would be the firm’s new debt ratio?
The fraction of the firm’s assets that the firm fiancé using debt is _____ %
The liability and owners
’
equity for Campbell Industries is found here:
Account Receivable
-
$523,000
Notes payable
-
$
247,000
Current Liabilities
-
$
770,000
Long term debt
-
$
1,276,000
Common Equity
-
$5,041,000
Total Liabilities & Equity
-
$7,087,000
(a)
What percentage of the firm
’
s assets does the firm finance using debt
(liability)?
(b)
If Campbell were to purchase a nw warehouse for $1.2 million and finance
it entirely with long
-
term debt, what would be the firm
’
s new debt ratio?
The fraction of t
he firm
’
s assets that the firm
fiancé
using debt is _____ %
The liability and owners’ equity for Campbell Industries is found here:
Account Receivable -$523,000
Notes payable- $247,000
Current Liabilities- $770,000
Long term debt- $1,276,000
Common Equity - $5,041,000
Total Liabilities & Equity - $7,087,000
(a) What percentage of the firm’s assets does the firm finance using debt
(liability)?
(b) If Campbell were to purchase a nw warehouse for $1.2 million and finance
it entirely with long-term debt, what would be the firm’s new debt ratio?
The fraction of the firm’s assets that the firm fiancé using debt is _____ %
