The Following Are the Income Statements and Balance Sheets for Score

question 83

Multiple Choice

The following are the income statements and balance sheets for Score Company: $\begin{array}{lr}&20X2\\\text { Sales only credit sales) }&\$1,606.0\\\text {Less cost of goods sold }&1,062.0\\\text {Gross profit }&\$544.0\\\text {Less operating expenses }&322.0\\\text {Operating income }&\$222.0\\\text { Less other expense: Interest}&9.6\\\text {Income before tax }&\$212.4\\\text {Less income tax expense }&85.0\\\text { Net income}&\$127.4\\\end{array}$


$\begin{array}{lrrlrr}&20X2&20X1&&20X2&20X1\\\text { Current assets: } &&&{\text { Current liabilities: }} \\\text { Cash } & \$ 36 & \$ 38 & \text { Accts payable } & \$ 98 & \$ 64 \\\text { Accts receivable } & 180 & 144 & \text { Wages payable } & 18 & 16 \\\text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\\text { Prepaid rent } & 20 & 24 & \text { Current portion } & &\\\text { Total current assets }&\$356&\$306&\text { of long-term debt }&30&6\\\text { Long-term assets: } & & & \text { Total current } & & \\\text { Fixed assets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\\text { Accum. deprec. } & \underline{206}) & \underline{180}) & \text { Long-term liabilities } & \underline{66} & \underline{92}\\\text { Total long-term assets }&\$114&\$136&\text { Total liabilities }&\$240&\$182\\&&&\text { Owners' equity: }\\&&&\text { Common stock, } \$ 5 \text { par }&\$80&\$80\\&&&\text { Retained income } & 150 & 180\\&&&\text { Total owners' equity }&\$230&\$260\\\text { Total assets }&\$470&\$442&\text { Total liab. and own. equity }&\$470&\$442\\\\\end{array}$
$\text {December 31 market price per share:}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\$120\quad\quad\$106$ The debt?to?equity ratio for Score Company in 20X2 is _____.

• A)0.96
• B)1.04
• C)0.76
• D)0.29

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Definitions:

Peripheral Route

A method of persuasion that relies on cues outside of the message content itself, such as the attractiveness or credibility of the source.

Persuasion

The act of convincing someone to do or believe something through reasoning or argument.

Central Route

A pathway of persuasion that involves careful and thoughtful consideration of the messages' content.

Persuasion

The process of changing another person's attitudes, beliefs, or behaviors through argumentation, appeal, or explanation.