Deacon Corporation Has Provided the Following Financial Data from Its

question 53

Multiple Choice

Deacon Corporation has provided the following financial data from its balance sheet and income statement:

-The company's debt-to-equity ratio at the end of Year 2 is closest to:

• A) 0.29
• B) 0.38
• C) 0.23
• D) 0.64

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Definitions:

Cash Flows

Represents the movement of money into and out of a business or financial entity, indicating its liquidity, financial health and ability to generate cash.

Operating Activities

Activities related to the primary revenue-generating operations of a company, often involving the production and delivery of goods and services.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from gross sales.

Accounts Receivable

Receivables from customers to a business for commodities or services rendered but payment has not been made yet.