If I could please get help with Part D, would be greatly appreciated. Thanks so much! Tops Markets, Inc. has $54 million of current assets and $58 million of noncurrent assets. Itforecasts an EBIT of $10.4 million and pays income taxes at a 35% rate. Short-term banknotes carry a 5% interest rate, and the company can issue long-term bonds at 7%. Thecompany has set a target debt ratio of 45%.Required:A. For a maturity mix of 60% current and 40% long-term debt, prepare the company'sabbreviated balance sheet.B. For a maturity mix of 60% current and 40% long-term debt, prepare the company'sfinancial half of its income statement.C. Based on the financial statements above, calculate the return on equity ratio inorder to evaluate the company's risk and return.D. Based on the financial statements above, calculate the current ratio in order toevaluate the company's risk and return.Your answers to this open-ended assignment should beplaced in the space below this line.A Current assets54,000,000Noncurrent assets58,000,000Total Assets112,000,000Current liabilities30,240,000Long-term liabilities20,160,000Total debit50,400,000Stockholders' equity61,600,000Total liabilities & equity112,000,000B EBIT10,400,000Interest on current liabilities1,512,000Interest on noncurrent debt1,411,200Total interest2,923,0007,477,000Earnings before taxesIncome taxes2,616,950Net income4,860,050C Net income4,860,050Stockholders' equity61,600,000Return on equity7.88%D Current assetsCurrent liabilitiesReturn on equity

Name: If I could please get help with Part D, would be greatly appreciated.
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Description: If I could please get help with Part D, would be greatly appreciated. Thanks so much! Tops Markets, Inc. has $54 million of current assets and $58 million of noncurrent assets. Itforecasts an EBIT of $10.4 million and pays income taxes at a 35% rate.

In finance current ratio is an important financial ratio. We use this ratio to determine the…

Answered: D Current assets Current liabilities

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D Current assets Current liabilities

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 16P

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