Bradley Incorporated Owns a Chain of Retail Stores

question 100

Essay

Bradley Incorporated owns a chain of retail stores. During December of 2009, a customer slipped in a doorway of its Missouri store and broke his ribs. He is suing Bradley for $200,000 for negligence. Bradley's legal counsel believes that it is only reasonably probable that Bradley will lose its defense of the lawsuit because, although the doorway was icy due to an ice storm that was occurring at the time of the fall, a sign on the door warned customers that the doorway was slippery when icy. On December 30, 2009, before considering the effects of this lawsuit, Bradley's current assets, total assets, current liabilities, and total liabilities were $420,000, $840,000, $100,000, and $300,000, respectively. After this event is properly accounted for, calculate Bradley's debt/equity ratio on December 31, 2009.

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Definitions:

Collection Agency

A business that pursues payments of debts owed by individuals or businesses.

Credit Card Company

A credit card company issues credit cards and is responsible for setting terms of use, collecting payments, and providing the credit for transactions.

Lost Card

A debit, credit, or any form of identification card that has been misplaced or stolen, potentially leading to unauthorized use if not reported.

Telemarketing Sales Rules of 1995

Regulations implemented to protect consumers from deceptive or abusive telemarketing practices, including various consumer rights and restrictions on telemarketers.