Assume a company provided the following balance sheet: Current assets: Current liabilities: Cash $ 60,000 Accounts payable $ 90,000 Accounts receivable 50,000 Accrued liabilities 40,000 Total current liabilities Inventory Total current assets 150,000 130,000 260,000 Bonds payable 110,000 Property, plant & equipment, net 380,000 Total liabilities 240,000 stockholders' equity: Common stock 170,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 230,000 400,000 Total assets $640,000 $640,000 The debt-to-equity ratio is closest to:

Assume a company provided the following balance sheet: Current assets: Current liabilities: Cash $ 60,000 Accounts payable $ 90,000 Accounts receivable 50,000 Accrued liabilities 40,000 Total current liabilities Inventory Total current assets 150,000 130,000 260,000 Bonds payable 110,000 Property, plant & equipment, net 380,000 Total liabilities 240,000 stockholders' equity: Common stock 170,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 230,000 400,000 Total assets $640,000 $640,000 The debt-to-equity ratio is closest to:

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.5E: Classification of Assets and Liabilities Indicate the appropriate classification of each of the...

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