On December 31, Sulfur Corporation has the following data available: Net income $100,000 Interest expenses 20,000 Preferred dividends 20,000 Total assets at the beginning of the year 760,000 Total assets at the end of the year 890,000 Total common stockholders' equity at the beginning of the year 420,000 Total common stockholders' equity at the end of the year 250,000 What is the leverage ratio? A. 3.56 B. 2.46 C. 2.50 D. 8.90
On December 31, Sulfur Corporation has the following data available: Net income $100,000 Interest expenses 20,000 Preferred dividends 20,000 Total assets at the beginning of the year 760,000 Total assets at the end of the year 890,000 Total common stockholders' equity at the beginning of the year 420,000 Total common stockholders' equity at the end of the year 250,000 What is the leverage ratio? A. 3.56 B. 2.46 C. 2.50 D. 8.90
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 23EB: Bastion Corporation earned net income of $200,000 this year. The company began the year with 10,000...
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Question
On December 31, Sulfur Corporation has the following data available:
Net income $100,000
Interest expenses 20,000
Preferred dividends 20,000
Total assets at the beginning of the year 760,000
Total assets at the end of the year 890,000
Total common
Total common stockholders' equity at the end of the year 250,000
What is the leverage ratio?
A. 3.56
B. 2.46
C. 2.50
D. 8.90
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