Following Are Selected Data from Westmoreland Company's Financial Statements ​
-Refer to the Westmoreland Company Data

question 151

Multiple Choice

Following are selected data from Westmoreland Company's financial statements. $$\begin{array} { l r r } & \underline { \mathbf { 2 0 1 7 } } & \underline { \mathbf { 2 0 1 6 } } \\\text { Current liabilities } & \$ 230,000 & \$ 160,000 \\\text { Long-term debt } & 120,000 & 320,000 \\\text { Stockholders' equity } & 420,000 & 540,000 \\\text { Cash payments for additions to plant and equipment } & 45,000 & 32,000 \\\text { Net cash flow from operating activities } & 80,000 & 51,000 \\\text { Interest and principal payments } & 12,000 & 8,000 \\\text { Net operating cash flows before interest and taxes } & 68,000 & 43,000 \\\text { Net income } & 90,000 & 72,000 \\\text { Interest expense } & 8,500 & 11,500 \\\text { Income taxes } & 16,000 & 14,500 \\\text { Dividends paid } & 15,000 & 30,000\\\end{array}$$ ​
-Refer to the Westmoreland Company data. ?
Westmoreland's debt-to-equity ratio for 2017 is:

• A) an indicator that Westmoreland Company's ability to meet current interest payments to creditors is increasing.
• B) increasing slightly from 2016 to 2017.
• C) an indicator that for every $1 of capital that stockholders provided, creditors provided $0.83.
• D) an indicator that Westmoreland Company has relied on stockholders for funds more in 2016 than in 2017.

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Definitions:

Infectious Microorganisms

Microbes capable of causing disease or infection when transmitted to other organisms.

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Practices aimed at maintaining clean hands to prevent the spread of diseases, typically through the use of handwashing or hand sanitizers.

Personal Protective Equipment

Gear used to reduce the risk of significant injuries and diseases in the workplace by providing protection from various hazards.

Sanitization Process

The procedure of making something clean and free from bacteria or other harmful microorganisms.