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Posted by: Homeworkhelp
Price Quoted by Student: $4
Posted On: 2011-03-07 07:07:27
 
Question

An unsecured creditor of Telnet Co. is monitoring Telnet’s financing activities.

 

E 14-15 Telnet Co.

 

Exercise 14-15 Pledged assets to secured liabilities

 

Fundamental Accounting Principles, 7th Ed Larson Wild Chiappetta

 

ANSWER KEY Exercise 14-15 An unsecured creditor of Telnet Co. is monitoring Telnet’s financing activities. Two years ago,

 

Exercise 14-15 An unsecured creditor of Telnet Co. is monitoring Telnet’s financing activities. Two years ago, Telnet’s ratio of pledged assets to secured liabilities was 1.7. One year ago, the ratio climbed to 2.3, and the most recent financial report shows the ratio is now 3.1. Describe what this trend likely indicates about the company’s activities, specifically from the point of view of this unsecured creditor.


Solutions
ANSWER KEY Exercise 14-15 An unsecured creditor of
Price $4
Attachment 1: E 14-15 Telnet Co..doc
Solution Posted By: Homeworkhelp    Posted on: 07-03-2011