Refer to the Following Selected Financial Information from Keller Company

question 181

Multiple Choice

Refer to the following selected financial information from Keller Company. Compute the company's debt to equity for Year 2. $\begin{array}{|l|r|c|}\hline & {\text { Year 2 }} & {\text { Year 1 }} \\\hline \text { Total assets } & \$ 327,800 & \$ 301,000 \\\hline \text { Total liabilities } & 171,400 & 169,300 \\\hline \text { Total equity } & 156,400 & 131,700 \\\hline\end{array}$

• A)1.9.
• B)0.5.
• C)1.1.
• D)0.9.
• E)2.1.

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Definitions:

Dividend Income

Income received from owning shares in a company, which is often taxable at different rates than regular income.

Distribution

The action of sharing something out among a number of recipients, often used in the context of financial assets or dividends.

Transferors Own 80%

A situation in a business transaction where the original owners or transferors retain an 80% ownership interest in the property or entity after the transaction is completed.

Tax-Free

Earnings, income, or transactions that are not subject to tax by the government.