Jordan Manufacturing Reports the Following Capital Structure What Is the Debt Ratio?
A)0

question 22

Multiple Choice

Jordan Manufacturing reports the following capital structure: $$\begin{array} { l r } \text { Current liabilities } & \$ 100,000 \\\text { Long-term debt } & 400,000 \\\text { Deferred income taxes } & 10,000 \\\text { Preferred stock } & 80,000 \\\text { Common stock } & 100,000 \\\text { Premium on common stock } & 180,000 \\\text { Retained earnings } & 170,000\end{array}$$ What is the debt ratio?

• A)0.48
• B)0.49
• C)0.93
• D)0.96
• E)None of the answers are correct.

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Definitions:

Writing Checks

The process of completing and signing a check as a means of making a payment from a bank account.

Additional Checks

Extra verification processes or controls implemented to ensure accuracy, compliance, or security.

Deposit

Money placed in a bank account or to secure a purchase until the transaction is completed.

Adjusted Cash Balance

The cash balance reported in a company's financial statements after adjustments have been made for checks written, deposits in transit, and other discrepancies.