question 13
Multiple Choice
Comparative financial statements for Bent Stew Enterprises are shown below: Assets Current assets: Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment, net Intangible assets, net Total assets Liabilities and Stockholders’ Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term debt Total liabilities Stockholders’ equity: Common stock Additional paid-in capital Retained earnings Total stockholders’ equity Total liabilities and stockholders’ equity Sales Cost of goods sold Gross margin Operating expenses Operating income Interest expense Earnings before income taxes Income taxes Net earnings December 312018$3,0008,50012,0001,40024,900103,60064,000$192,500$11,00011,80022,800120,000142,80015,00020,00014,70049,700$192,500 Year Ended December 312018$250,000164,00086,00064,00022,0007,50014,5007,800$6,7002017$8006,0008,20090015,900123,30047,000$186,200$12,0003,20015,200128,000143,20015,00020,0008,00043,000$186,2002017$230,000142,30087,70054,00033,7005,90027,8007,140$20,680 The income tax rate is 54%.How would you best describe the company's use of financial leverage in 2018?
Definitions:
Placebo Effects
The phenomenon in which patients experience real improvements in their health or symptoms due to their belief in the efficacy of a treatment that has no therapeutic value.
Experimenter Bias
A form of cognitive bias that can affect the outcome of research, originating from the researcher's expectations, attitudes, or behaviors influencing the subjects or results.
Research Design
The overall strategy and structure of an investigation aiming to answer research questions by outlining procedures for collecting, analyzing, and interpreting data.
Naturalistic Observation
Naturalistic observation is a research method in which subjects are observed in their natural environment without any manipulation by the observer.