Alpha Company Provided the Following Balance Sheet for Year 2

question 131

Multiple Choice

Alpha Company provided the following balance sheet for Year 2: $\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 4,800 \\\text { Accounts receivable } & 6,950 \\\text { Inventory } & 10,750 \\\text { Prepaid expenses } & 1,800 \\\text { Plant and equipment, net of depreciation } &30,400 \\\text { Land } & \underline{ 23,000 }\\\text { Total assets } &\underline{ \$77,700}\\\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } & \$ 3,100 \\\text { Salaries payable } & 6,900 \\\text { Bonds payable (Due in ten years) } & 13,000 \\\text { Common stock, no par } &17,000 \\\text { Retained earnings } &\underline{ 37,700} \\\text { Total liabilities and stockholders' equity }& \$77,700\end{array}$

What is the company's plant assets to long-term liabilities ratio?

• A) 1.31
• B) 2.34
• C) 2.85
• D) None of these answers are correct.

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Definitions:

Symbolic Interaction

A theory that examines society through the lens of individual and group interactions, emphasizing the roles of symbols and language in social life.

Socialization

The process by which individuals learn and internalize the values, beliefs, norms, and social skills necessary to participate as functioning members of their society.

Role Distancing

A behavior or strategy whereby an individual separates themselves from the role they are expected to play, indicating a divergence between behavior and true belief or identity.

Dramaturgy

A sociological perspective that likens social interaction to the theater, where individuals perform roles before others.