Paint Company Following Are Selected Data from Paint Company's Financial Statements

question 241

Multiple Choice

Paint Company
Following are selected data from Paint Company's financial statements.

-Refer to the Paint Company data. The company's debt-to-equity ratio was 0.83 to 1 in 2016 and 0.89 to 1 in 2015. Which of the following statements is true concerning Paint?

• A) The company has a smaller percentage of capital from owners at the end of 2016 than at the end of 2015.
• B) The company relied more on creditors for financing during 2016 than in 2015.
• C) The company is improving its debt-to-equity ratio.
• D) The company appears to be in a weaker position at the end of 2016 to finance capital expenditures from cash flow generated by operating activities.

---

Definitions:

Human And Mechanical

Covers processes or tasks performed by humans and machines, highlighting the interaction or division of labor between human skills and mechanical automation.

Cognitive Dissonance

A psychological phenomenon where an individual feels mental discomfort due to holding contradictory beliefs or ideas, or because of an action that contradicts their beliefs.

Buyer's Remorse

Feelings of regret after making a purchase, often due to doubts about the product’s value or necessity.

Share Of Customer

A measure of the quantity of purchase dollars each customer spends on the company’s products.