MEGAFRAME COMPUTER COMPANY
Balarce Sheet
as of Decermber 31 MEGAFRAME COMPUTER COMPANY
Income Staternent
for the Year Ended Decernber

question 122

Multiple Choice

MEGAFRAME COMPUTER COMPANY
Balarce Sheet
As of Decermber 31
$\begin{array}{lr}\text { ASSETS } \\\text { Cash } & \$ 50,000 \\\text { Accounts receivable } & 70,000 \\\text { Inventory } & 110,000 \\\text { Net plant and equipment } & 220,000\\\text { Total assets }&\$450,000\\\\\text { LIABIITES AND STOCKHOLDERS' EQUTTY }\\\text { Accounts payable } & \$ 0,000 \\\text { Accrued expenses } & 50,000 \\\text { Long-term debt } & 130,000 \\\text { Common stock } & 70,000 \\\text { Paid-in capital } & 40,000 \\\text { Retained earnings } & 90,000\\\text { Total liabilities and stockholders' equity }&\$450,000\end{array}$
MEGAFRAME COMPUTER COMPANY
Income Staternent
For the year ended Decernber 31
$\begin{array}{ll}\text { Sales (all on credit) }&\$875,000\\\text { Cost of goods sold }&600,000\\\text { Gross profit }&\$275,000\\\text { Sales and administrative expenses }&30,000\\\text { Depreciation }&55,000\\\text { Operating profit }&\$190,000\\\text { Interest expense }&25,000\\\text { Profit before taxes }&\$165,000\\(\text { Taxes (30\%) }&49,000\\\text { Net income }&\$115,500\\\end{array}$

Refer to the tables above. The firm's debt to total assets ratio is ________.

• A) 56.1%
• B) 26.7%
• C) 28.6%
• D) 55.6%

---

Definitions:

Outcome Fairness

Outcome Fairness is concerned with the fairness of the results of decisions and processes, assessing whether the outcomes are just and equitable among all parties involved.

Voluntary Turnover

The rate at which employees willingly leave their jobs over a certain period.

Talent Poaching

The practice of attracting and hiring highly skilled employees from competitor firms, often offering better compensation or benefits.

Top Performers

Definition: Employees who significantly exceed the standard expectations and performance levels in their roles.