Beacon Incorporated Owns a Chain of Retail Stores

question 42

Essay

Beacon Incorporated owns a chain of retail stores. During December of 2017, a customer slipped in a doorway of its Virginia store and broke his ribs. He is suing Beacon for $200,000 for negligence. Beacon's legal counsel believes that it is remote that Beacon will lose its defense of the lawsuit because the doorway recently was rebuilt with all-weather traction stripping and 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, Beacon'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 Beacon's debt/asset ratio on December 31, 2017.

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Definitions:

Subtractive Color Mixing

A process by which colors are created by absorbing or filtering out parts of the light spectrum, as seen in mixing pigments in paints.

Blending

The cognitive process of combining two or more distinct entities or ideas into a new, unified concept.

Trichromatic Color Mixing

A theory of color vision that proposes the eye has three types of receptors, each sensitive to red, green, or blue light, and that all colors are perceived through the combination of these receptors' activities.

Opponent-process Theory

A psychological and neurological model that explains how the perception of one color can affect the perception of another, leading to contrasting aftereffects.