In 2016, Bubble Inc

question 123

Multiple Choice

In 2016, Bubble Inc. had net income of $500,000, assets of $5,000,000, sales of $2,000,000, and equity of $2,000,000. In 2017, Bubble Inc. had net income of $600,000, assets of $7,000,000, sales of $1,300,000, and equity of $1,700,000. Is Bubble Inc's 2017 debt to total asset better than its 2016 debt to total assets?

• A) No
• B) Yes
• C) Stayed the same
• D) Not enough information to answer

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