The Following Data Came from the Financial Statements of Petrini

question 67

Multiple Choice

The following data came from the financial statements of Petrini Company:

-Refer to Exhibit 14-6. Given the information above, compute the debt-to-equity ratio (rounded to two decimal places) for Petrini Company.

• A) 0.86
• B) 1.86
• C) 1.16
• D) 0.54

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Definitions:

Work in Process

Goods that are in the midst of being produced, representing inventory that is not yet fully completed.

Predetermined Overhead Rate

A rate calculated before a period begins by dividing estimated manufacturing overhead costs by an allocated base, used to apply overhead costs to products.

Fixed Overhead

Costs that remain constant regardless of the amount of goods produced or sold, including items like rent, salaries, and insurance.

Work in Process

Items or materials that are partially completed in the manufacturing process, situated between raw materials and finished goods.