The Following Partial Balance Sheet Is Provided for Groom Company

question 89

Multiple Choice

The following partial balance sheet is provided for Groom Company:
$\begin{array}{lcc}\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } &\$9,000\\\text { Salaries payable } &12,000\\\text { Bonds payable (due in ten years) } &20,000\\\text { Common stock, no par }&30,000 \\\text { Retained earnings } & 54,000 \\ \text { otal liabilities and stockholders' equity } & \$ 125,000\\\end{array}$
What is the company's debt to assets ratio? (Rounded to nearest whole percent.)

• A) 49%
• B) 16%
• C) 33%
• D) Cannot be determined with the information given.

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Definitions:

Grapevine

Informal communication channels within an organization, through which information and rumors circulate beyond official communication paths.

Cultural Context

The environment or situation that surrounds and influences the way in which individuals communicate and interpret behavior.

Economic Context

The circumstances or environment in which economic activities occur, which can include factors like market conditions, economic policies, and the overall state of the economy.

Cluster

A collection of similar objects or individuals that are located or happen in close proximity.