The Following Are the Income Statements and Balance Sheets for Coors

question 115

Multiple Choice

The following are the income statements and balance sheets for Coors Company: $\begin{array}{ll}&20X2\\\text { Sales (onlycredit sales) } & \$ 1,606.0 \\\text { Less cost of goods sold } & \underline{1,062.0} \\\text { Gross profit } & \$ 544.0 \\\text { Less operating expenses } & 322.0\\\text { Operating income } & \$ 222.0 \\\text { Less other expense: Interest } & 9.6\\\text { Income before tax } & \$ 212.4 \\\text { Less income tax expense } & 85.0\\\text { Net income }&\$127.4\end{array}$ $\begin{array}{ll}&20X2\\\text { Sales (onlycredit sales) } & \$ 1,606.0 \\\text { Less cost of goods sold } & \underline{1,062.0} \\\text { Gross profit } & \$ 544.0 \\\text { Less operating expenses } & 322.0\\\text { Operating income } & \$ 222.0 \\\text { Less other expense: Interest } & 9.6\\\text { Income before tax } & \$ 212.4 \\\text { Less income tax expense } & 85.0\\\text { Net income }&\$127.4\end{array}$ $\begin{array}{llllll}&20X2&20X1&&20X2&20X1\\\text { Current assets: } & & & \text { Current liab: } \\\text { Cash } & \$ 36 & \$ 38 & \text { Accts payable } & \$ 98 & \$ 64 \\\text { Accts receivable } & 180 & 144 & \text { W ages p ayable } & 18 & 16 \\\text { Inventory } & 120 & 100 & \text { Taxes payable } & 28 & 4 \\\text { Prep aid rent } & 20 & 24 & \text { Current portion } & &\\\begin{array}{l}\text { Total current as sets } \\\text { Long-term as sets: }\end{array} & \$ 356 & \$ 306 & \begin{array}{l}\text { of long- term debt } \\\text { Total current }\end{array} & \underline{30} & \underline{6} \\\text { Fixed ass ets } & \$ 320 & \$ 316 & \text { liabilities } & \$ 174 & \$ 90 \\\text { Accum. deprec. } & (206) & (180) & \text { Long-term liabilities } & 66 & 92\\\text { Total long- term } & \$ 114 & \$ 136 & \text { T otal liabilities } & \$ 240 & \$ 182\\\text { assets }\\&&&\text { Owners' equity: }\\\text { Common stock, } \$ 5 \text { par } &\$ 80 & \$ 80\\&&&\text { Retained income } & \underline{150} & \underline{180} \\&&&\text { T otal owners' equity } & \$ 230 & \$ 260\\&&&\text { T ot al liab. and }\\\text { Total assets } & \$ 470 & \$ 442 & \text { own. equity } & \$ 470 & \$ 442\end{array}$ December 31 market price per share: $120 $106
The debt- to- equity ratio for Coors Company in 20X2 is:

• A) 1.04
• B) 0.76
• C) 0.96
• D) 0.29

---

Definitions:

Heirs Entitled

Individuals designated by law or by a will to inherit property or assets from a deceased person's estate.

Exchange Of E-Mail

The act of sending and receiving messages through electronic mail systems.

Partnership Agreement

A partnership agreement is a contract between two or more parties agreeing to manage and operate a business together, sharing profits, losses, and responsibilities.

Legally Binding

Legally binding refers to agreements or contracts that have legal force, meaning they are enforceable by law and must be complied with by the parties involved.