Fangled Company Reports the Following Balance Sheet $\quad$ $\quad$

question 161

Multiple Choice

Fangled Company reports the following balance sheet:
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Fangled Company }$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Balance Sheet }$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { December 31, } 20 \times 3$


$\begin{array}{l}\begin{array}{lll}\text { Current Assets: }\\\text { Cash } & \$ 6,000 \\\text { Accounts Receivable } & 4,000 \\\text { Inventory } & \underline{14,000} \\\text { Total Current Assets } & 24,000\end{array}\begin{array}{lll}\text { Current Liabilities: }\\\text { Accounts Payable } & \$ 3,000 \\\text { Wages Payable } & 2,000 \\\text { Total Current Liabilities } & \$ 5,000 \\\text { Long-term Bond Payable } & \underline{24,000} \\\text { Total Liabilities } & \$ 29,000\end{array}\end{array}$



$\begin{array}{l}\begin{array}{lll}\text { Long-term Assets: }\\\text { Fixed Assets } & \$ 60,000 \\\text { Accumulated Depr. } & \underline{(17,000) } \\\text { Net Fixed Assets } & \underline{43,000} \\\text { Total Assets } & \underline{\$ 67,000}\\\\\end{array}\begin{array}{lll}\text { Stockholders' Equity: }\\\text { Common Stock } & \$ 12,000 \\\text { Retained Earnings } & \underline{26,000} \\\text { Total Stockholders' Equity } & \underline{38,000} \\\text { Total Liabilities \& } & \\\text { Stockholders' Equity } &\underline{ \$ 67,000} \end{array}\end{array}$

What is the debt-to-equity ratio for Fangled Company at December 31, 20X3?

• A) 43.28%.
• B) 63.16%.
• C) 76.32%.
• D) 92.31%.
• E) 111.54%.

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