Following Is Financial Statement Information for Rogex Corporation: Cash =

question 62

Multiple Choice

Following is financial statement information for Rogex Corporation: cash = $242; accounts receivable = $850; inventory = $820; net fixed assets = $3,408; accounts payable = $700; short-term notes payable = $740; long-term liabilities = $1,100; common stock = $1,160; and retained earnings = $1,620. What is the debt-to-equity ratio for Rogex?

• A)0.91
• B)2.15
• C)0.48
• D)1.12

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Definitions:

Current Ratio

A measure used to determine a company's potential to fulfill obligations due within one year by calculating the ratio of its current assets to its current liabilities.

Indicator Of Liquidity

Measures that indicate how easily a company can convert its assets into cash to cover short-term obligations.

Total Obligations

The sum of a borrower's current and long-term financial responsibilities.

Past Transactions

Completed financial activities or events that have occurred in the past and have been recorded in the accounting records.