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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Definitions:

Committment

The act of dedicating oneself to a cause, activity, or purpose with earnest intention. This is another way of expressing dedication or pledge.

Potential Coalition

A group of parties or individuals that could come together to form an alliance based on shared interests or goals, though they have not yet done so.

Proactive Action

Proactive action involves taking initiative and actions in anticipation of future problems, needs, or changes rather than reacting to events after they occur.

Critical Mass

The minimum amount or number required for a specific process, such as a chain reaction, to occur or to sustain itself.