Omega Company provided the following balance sheet for 2014: Assets Cash $ 4,200 Accounts receivable 6,350 Inventory 10,450 Prepaid expenses 1,800 Plant and equipment, net of depreciation 29,200 Land 20,550 Total assets $ 72,550 Liabilities and Stockholders\' Equity Accounts payable $ 2,680 Salaries payable 7,200 Bonds payable (Due in 2020) 11,500 Common stock, no par 15,500 Retained earnings 35,670 Total liabilities and stockholders\' equity $ 72,550 What is the company\'s plant assets to long-term liabilities ratio Solution Plant Assets = Plant and equipment net of depreciation + Land = $29200 + $20550 = $49750 Long term liabilities = Bonds payable (Due in 2020) = $11500 Therefore, Company\'s plant assets to long term liabilities ratio = $49750 / $11500 = 4.33.

1. Omega Company provided the following balance sheet for 2014: Assets Cash $ 4,200 Accounts
receivable 6,350 Inventory 10,450 Prepaid expenses 1,800 Plant and equipment, net of
depreciation 29,200 Land 20,550 Total assets $ 72,550 Liabilities and Stockholders' Equity
Accounts payable $ 2,680 Salaries payable 7,200 Bonds payable (Due in 2020) 11,500 Common
stock, no par 15,500 Retained earnings 35,670 Total liabilities and stockholders' equity $ 72,550
What is the company's plant assets to long-term liabilities ratio
Solution
Plant Assets = Plant and equipment net of depreciation + Land
= $29200 + $20550 = $49750
Long term liabilities = Bonds payable (Due in 2020) = $11500
Therefore, Company's plant assets to long term liabilities ratio = $49750 / $11500 = 4.33