A Corporation Reports the Following Year-End Balance Sheet Data A)037
B)0

question 127

Multiple Choice

A corporation reports the following year-end balance sheet data. The company's debt ratio equals: $$\begin{array} { l | r | l | r } \hline\text { Cash } & \$ 40,000 & \text { Curtent liabilities } & \$ 75,000 \\\hline \text { Accounts receivable } & 55,000 & \text { Iong-term liabilities } & \mathbf { 3 5 , 0 0 0 } \\\hline \text { Inventory } & 60,000 & \text { Common stock } & 100,000 \\\hline \text { Equipment } & \underline { 145,000 } & \text { Retaned eamings } & 90,000 \\\hline \text { Total assets } & \underline { \$3 00,000 } & \text { Total liabilities and equity } & \$ 300,000 \\\hline\end{array}$$

• A)0.37
• B)0.58
• C)0.63
• D)1.27
• E)2.07

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Prices established through the interaction of supply and demand in a marketplace, reflecting the equilibrium where the quantity supplied equals the quantity demanded.

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