Examlex

Solved

Peartree Company Provides the Following Data -
What Is Peartree's Debt Ratio at Year-End 2014?
A)

question 102

Multiple Choice

Peartree Company provides the following data:
 BALANCE SHEET  Dec 31,2014 Dec 31,2013 Cash $21,000$18,000 Accounts receivable, net 31,00035,000 Inventory 53,00025,000 PP&E, net 120,00090,000 Total assets $225,000$168,000 Accounts payable $4,000$6,000 Accrued liabilities 2,0001,000 Long-term notes payable 84,00090,000 Total liabilities $90,000$97,000 Common stock $30,000$2,000 Retained earnings 113,00074,000 Treasury stock (8,000) (5,000)  Total stockholders’ equity $135,000$71,000 Total liabilities and  stockholders’ equity $225,000$168,000\begin{array}{|l|r|r|}\hline \text { BALANCE SHEET } & \text { Dec } 31,2014 & \text { Dec } 31,2013 \\\hline \text { Cash } & \$ 21,000 & \$ 18,000 \\\hline \text { Accounts receivable, net } & 31,000 & 35,000 \\\hline \text { Inventory } & 53,000 & 25,000 \\\hline \text { PP\&E, net } & 120,000 & 90,000 \\\hline \text { Total assets } & \$ 225,000 & \$ 168,000 \\\hline\\\hline \text { Accounts payable } & \$ 4,000 & \$ 6,000 \\\hline \text { Accrued liabilities } & 2,000 & 1,000 \\\hline \text { Long-term notes payable } & 84,000 & 90,000 \\\hline \text { Total liabilities } & \$ 90,000 & \$ 97,000 \\\hline\\\hline \text { Common stock } & \$ 30,000 & \$ 2,000 \\\hline \text { Retained earnings } & 113,000 & 74,000 \\\hline \text { Treasury stock } & (8,000) & (5,000 ) \\\hline \text { Total stockholders' equity } & \$ 135,000 & \$ 71,000 \\\hline \begin{array}{c}\text { Total liabilities and } \\\text { stockholders' equity }\end{array} & \$ 225,000 &\$168,000 \\\hline\end{array}
-
What is Peartree's debt ratio at year-end 2014?


Definitions:

Proximity Switch

A sensor that detects the presence or absence of an object without physical contact, usually used in industrial applications to control machinery.

Capacitor Proximity Sensors

Sensors that use the capacitance change principle to detect the presence or absence of objects, often used in material handling and level control applications.

Conductive Materials

Materials that permit the flow of electric current, often used in electrical and electronic applications for wiring and components.

Related Questions