Cullumber Corporation develops and markets a harness in which a baby may be placed to bounce up and down. Cullumber is considering approaching the bond market to raise funds to support the expansion of its manufacturing facility in order to meet the growing demand for the baby harness. The following is an extract from Cullumber's statement of financial position: Current assets Cash Trade receivables Inventories Total current assets Non-current assets Property, plant, and equipment Intangible assets Total non-current assets Total assets Current liabilities Trade and other payables Current portion of warranty liability Current portion of long-term debt Total current liabilities Non-current liabilities Long-term loan CULLUMBER CORPORATION Statement of Financial Position (in thousands) Deferred income tax liabilities Warranty liability Total non-current liabilities Shareholders' equity Share capital Retained earnings Total shareholders' equity Total liabilities and shareholders' equity (a) * Your answer is incorrect. Debt to equity December 31, 2024 $67,000 Net debt as a percentage of total capitalization 860,000 500,000 1,427,000 1,193,000 1,071,000 2,264,000 $3,691,000 $25,000 150,000 84,000 259,000 907,000 63,000 594,000 1,564,000 1,277,000 591,000 1,868,000 $3,691,000 December 31, 2023 2024 $85,000 763,000 1,146,000 298,000 1,386,000 1,270,000 2,656,000 $3,802,000 0.98 :1 $34,000 176,000 48 :1 93,000 303,000 987,000 68,000 1,762,000 707,000 1,277,000 Cullumber's management would like you to determine the company's debt to equity ratio and net debt as a percentage of capitalization ratio for 2023 and 2024 as it is considering approaching the bond market. (Round answers to 2 decimal places, e.g. 1.25:1.) 1,737,000 $3,802,000 460,000 2023 1.19 :1 52 :1
Cullumber Corporation develops and markets a harness in which a baby may be placed to bounce up and down. Cullumber is considering approaching the bond market to raise funds to support the expansion of its manufacturing facility in order to meet the growing demand for the baby harness. The following is an extract from Cullumber's statement of financial position: Current assets Cash Trade receivables Inventories Total current assets Non-current assets Property, plant, and equipment Intangible assets Total non-current assets Total assets Current liabilities Trade and other payables Current portion of warranty liability Current portion of long-term debt Total current liabilities Non-current liabilities Long-term loan CULLUMBER CORPORATION Statement of Financial Position (in thousands) Deferred income tax liabilities Warranty liability Total non-current liabilities Shareholders' equity Share capital Retained earnings Total shareholders' equity Total liabilities and shareholders' equity (a) * Your answer is incorrect. Debt to equity December 31, 2024 $67,000 Net debt as a percentage of total capitalization 860,000 500,000 1,427,000 1,193,000 1,071,000 2,264,000 $3,691,000 $25,000 150,000 84,000 259,000 907,000 63,000 594,000 1,564,000 1,277,000 591,000 1,868,000 $3,691,000 December 31, 2023 2024 $85,000 763,000 1,146,000 298,000 1,386,000 1,270,000 2,656,000 $3,802,000 0.98 :1 $34,000 176,000 48 :1 93,000 303,000 987,000 68,000 1,762,000 707,000 1,277,000 Cullumber's management would like you to determine the company's debt to equity ratio and net debt as a percentage of capitalization ratio for 2023 and 2024 as it is considering approaching the bond market. (Round answers to 2 decimal places, e.g. 1.25:1.) 1,737,000 $3,802,000 460,000 2023 1.19 :1 52 :1
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter7: Financial Activities
Section: Chapter Questions
Problem 18PC
Related questions
Question
Transcribed Image Text:Cullumber Corporation develops and markets a harness in which a baby may be placed to bounce up and down. Cullumber is
considering approaching the bond market to raise funds to support the expansion of its manufacturing facility in order to meet the
growing demand for the baby harness. The following is an extract from Cullumber's statement of financial position:
Current assets
Cash
Trade receivables
Inventories
Total current assets
Non-current assets
Property, plant, and equipment
Intangible assets
Total non-current assets
Total assets
CULLUMBER CORPORATION
Statement of Financial Position
(in thousands)
Current liabilities
Trade and other payables
Current portion of warranty liability
Current portion of long-term debt
Total current liabilities
Non-current liabilities
Long-term loan
Deferred income tax liabilities
Warranty liability
Total non-current liabilities
Shareholders' equity
Share capital
Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity
(a)
* Your answer is incorrect.
Debt to equity
December 31, 2024
$67,000
860,000
Net debt as a percentage of total capitalization
500,000
1,427,000
1,193,000
1,071,000
2,264,000
$3,691,000
$25,000
150,000
84,000
259,000
907,000
63,000
594,000
1,564,000
1,277,000
591,000
1,868,000
$3,691,000
December 31, 2023
2024
$85,000
763,000
1,146,000
298,000
1,386,000
1,270,000
2,656,000
$3,802,000
$34,000
176,000
0.98 :1
93,000
48 :1
303,000
987,000
68,000
1,762,000
707,000
1,277,000
Cullumber's management would like you to determine the company's debt to equity ratio and net debt as a percentage of
capitalization ratio for 2023 and 2024 as it is considering approaching the bond market. (Round answers to 2 decimal places,
e.g. 1.25:1.)
1,737,000
460,000
$3,802,000
2023
1.19 :1
52 :1
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