The Following Information Pertains to Barnum Company: Balance Sheet
at $31,20 \times 2$

question 159

Multiple Choice

The following information pertains to Barnum Company: Balance Sheet
At D ecember $31,20 \times 2$
$\begin{array}{llll}\text { Current assets } & \$ 18,700 & \text { Current liabilities } & \$ 7,600 \\\text { Long-term assets } & \underline{29,700} & \text { Long- term liabilities } & 13,250 \\& & \text { Stockholders' eauity } & 27,550\\\text { Total assets }& \$ 8400 & \text { Total liabilities and s.e. } &\$ 48,400\\\end{array}$

Barnum Company Income Statement
For the Year Ended December 31, 20X2
$\begin{array}{ll}\text { Sales } & \$ 106,950 \\\text { Less: Cost of goods sold } & (61,800) \\\text { Gross profit } & \$ 45,150 \\\text { Less: Operating expenses } & \underline{31,700} \\\text { Operatingincome } & \$ 13,450 \\\text { Less other expenses: interest } & (1,300) \\\text { Income before taxes } & \$ 12,150 \\\text { Less: Income tax expense } & \underline{(4,850) } \\\text { Net income } & \$ 7,300\end{array}$ There were 1,000 shares of common stock outstanding with a market value of $75 as of December 31, 20X2. Dividends declared and paid was $5 per share. The current- debt- to- equity ratio for 20X2 is:

• A) 15.7%
• B) 43.1%
• C) 75.7%
• D) 27.6%

Learn how to record transactions involving the issuance of common stock.

Gain knowledge on the concept and accounting treatment of stock subscriptions.

Comprehend the process of recording cash received from stock subscriptions.

Understand the general guidelines and support options for victims of domestic violence.

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A person's belief in their own ability to complete tasks and achieve goals.

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