Bradley Incorporated Owns a Chain of Retail Stores

question 47

Essay

Bradley Incorporated owns a chain of retail stores. During December of 2017, a customer slipped in a doorway of its Missouri store and broke his ribs. He is suing Bradley for $200,000 for negligence. Bradley's legal counsel believes that it is only reasonably probable that Bradley will lose its defense of the lawsuit because, although the doorway was icy due to an ice storm that was occurring at the time of the fall, a sign on the door warned customers that the doorway was slippery when icy. On December 30, 2017, before considering the effects of this lawsuit, Bradley's current assets, total assets, current liabilities, and total liabilities were $420,000, $840,000, $100,000, and $300,000, respectively. After this event is properly accounted for, calculate Bradley's debt/equity ratio on December 31, 2017.

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Definitions:

Physiological Psychology

A branch of psychology that studies the relationship between physiological processes and behaviors.

Genetic Factors

Components of an organism's DNA that contribute to its physical development, behavior, and predispositions.

Developmental Psychologist

A professional specializing in understanding how humans grow and change throughout their lives, from infancy to old age.

Aggressive Behaviour

Actions meant to cause harm or force dominance over others, ranging from verbal abuse to physical violence.