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

question 99

Multiple Choice

Fangled Company prepared 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 long-term-debt-to-total-capital ratio for Fangled Company at December 31, 20X3?

• A) 35.82%.
• B) 38.71%.
• C) 63.16%.
• D) 92.31%.
• E) 200.00%.

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Definitions:

Terracotta

A hard, fired clay, brownish-red in color when unglazed, that is used for architectural decoration and pottery.

Etruscan Sculpture

Artistic works produced by the Etruscan civilization of ancient Italy, known for their bronze works, terracotta funerary urns, and monumental stone sculptures.

Etruscan Artistic Style

A style of art originating from the ancient Etruscan civilization of Italy, known for its sophisticated metalwork, tomb paintings, and sculpture, distinct for its vitality and expression.

Motion and Vitality

Concepts often related to the physical and dynamic qualities observed in living beings, or in art, the depiction of movement or life-like energy.