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##### Financial growth and Equity

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Problem 12.1;Middleton Clinic had total assets of \$500,000 and an equity balance of \$350,000 at the end of 2010.One year later, at the end of 2011, the clinic had \$575,000 in assets and \$380,000 in equity. What was the clinic?s dollars growth in assets during 2012, and how was this growth financed?;Here is the template that my teacher wants it to be answered in, it is fill in the blanks;The clinic?s assets grew from \$_______ to \$_________, or by \$________, in 2012. Thus, the growth rate in assets was _______%. At the same time, the clinic?s equity grew from \$________ to \$________, so the growth in equity was _______%. Because the balance sheet must balance, the clinic?s total debt must have grown from \$__________ to \$________. Thus, the clinic?s growth was financed with \$_______ of equity and \$_________ of debt, for total financing of \$________, which matches the increase in total assets. With debt increasing more than equity, the clinic?s debt ratio (Total debt / Total assets) increased from _____% to ______%.

Paper#17896 | Written in 18-Jul-2015

Price : \$37