Condensed Financial Data Are Presented Below for the Phoenix Corporation

question 91

Multiple Choice

Condensed financial data are presented below for the Phoenix Corporation:
$\begin{array}{lrr}&2014&2013\\\text { Accounts receivable } & \$ 267,500 & \$ 230,000 \\\text { Inventory } & 312,500 & 257,500 \\\text { Total current assets } & 670,000 & 565,000 \\\text { Intangible assets } & 50,000 & 60,000 \\\text { Total assets } & 825,000 & 695,000 \\\text { Current liabilities } & 252,500 & 200,000 \\\text { Long-term liabilities } & 77,500 & 75,000 \\\text { Sales } & 1,640,000 & \\\text { Cost of goods sold } & 982,500 & \\\text { Interest expense } & 10,000 & \\\text { Income tax expense } & 77,500 & \\\text { Net income } & 127,500 & \\\text { Cash flow from operations } & 71,000 & \\\text { Cash flow from investing activities } & (6,000) & \\\text { Cash flow from financing activities } & (62,500) & \\\text { Tax rate } & 30 \% &\end{array}$
-The long-term debt to assets for 2014 is (rounded) :

• A)9.4%
• B)10.2%
• C)40.0%
• D)43.4%

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Definitions:

Shaping

A method of teaching or behavior modification that involves reinforcing successive approximations toward a desired behavior.

Shaping

The process of reinforcing successive approximations to a desired behavior.

Operant Conditioning

A learning strategy in which the level of a specific behavior is adjusted using incentivization or penal measures.

Reinforcement

In behavioral psychology, it is a consequence that strengthens an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.