The Following Partial Balance Sheet Is Provided for Groome Company

question 71

Multiple Choice

The following partial balance sheet is provided for Groome Company: $\begin{array}{lr}\text { Liabilities and stockholders' Equity }\\\\\text { Accounts payable } & \$ 15,300 \\\text { Salaries payable } & 13,000 \\\text { Bonds payable (due in ten years) } & 11,800 \\\text { Common stock, no par } & 27,700 \\\text { Retained earnings } &\underline{ 91,500} \\\text { Total liabilities and stockholders' equity } &\underline{ \$ 159,300}\end{array}$ What is the company's debt to assets ratio? (Rounded to nearest whole percent.)

• A) 7%
• B) 34%
• C) 25%
• D) Cannot be determined with the information given.

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Definitions:

Managerial Skills

The abilities and competencies that managers need in order to fulfill their duties effectively, such as leadership, communication, and decision-making skills.

School of Hard Knocks

An expression describing education obtained through life experiences, often involving adversity or challenges, rather than through formal academic institutions.

Decision-Making Function

The process through which decisions are made in an organization, often involving problem identification, solution generation, and choice implementation.

Company Culture

The shared values, beliefs, attitudes, and practices that characterize an organization and shape its behavior and interactions.