Krakov Company Has Total Assets of $170,000 and Total Liabilities

question 82

Multiple Choice

Krakov Company has total assets of $170,000 and total liabilities of $80,000.The company's debt-to-equity ratio is closest to which of the following?

• A) 0.32 to 1.
• B) 0.47 to 1.
• C) 0.53 to 1.
• D) 0.89 to 1.

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Definitions:

Corporate Tax Rate

The corporate tax rate is the percentage of a corporation's income that is seized by the government as tax.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Notes Payable

A written promise to pay a certain amount of money, usually including interest, by a specified date or on demand.

Net Purchases

The total amount of purchases after subtracting returns, allowances, and discounts.