Wetzel Company Has the Following Data $\begin{array}{lccc}2X13 & 2X12& 2X11\\\hline\end{array}$ Current Liabilities

question 29

Multiple Choice

Wetzel Company has the following data:
$\begin{array}{lccc}2X13 & 2X12& 2X11\\\hline\end{array}$ Current Liabilities:
$\begin{array} { l l l l } \text { Accounts Payable } & \mathbf { \$ } 50 & \mathbf { \$ } 30 & \mathbf { \$ 2 0 } \\\text { Wages Payable } & 20 & 10 & 5 \\\text { Taxes Payable } & 10 & 5 & 15 \\\text { Current Long-Term Debt } & \underline { 10 } & \underline { 15 } & 5 \\\text { Total Curent Liabilitief } & \mathbf { \$ 9 0 } & \mathbf { \$ } 60 & \$ 45\end{array}$
Long-Term Liabilities:
$\begin{array}{lccc}\text { Long-Term Debt} &35&45&40 \\\text { Total I iabilities} & \$ 125 & \$ 105 & \$85\end{array}$
Stockholders' Equity:
$\begin{array}{llll}\text { Common Stock } \$ 5 \text { par } & \$ 50 & \$ 50 & \$ 50 \\\text { Retained Earnings } & \underline{75} & \underline{60} & \underline{40} \\\text { Total Stockholders' Equity } &\$ 125&\$ 110 & \underline{\$ 90} \\\text { Total Liab. \& Stk. Equity } & \$ 250 & \$215&\$175\end{array}$
What is the total-debt-to-total-assets ratio for Wetzel Company in 2X13? Has the total-debt-to-total-assets ratio improved or not improved since 2X12?

• A)0.14,improved
• B)0.18,improved
• C)0.18,not improved
• D)0.50,improved
• E)0.50,not improved

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Definitions:

Express Authority

Explicit permission granted to an individual or entity to act on behalf of another, typically in a legal or business context.

Disclosed Principal

A principal whose identity is known to a third party. The third party is aware that the agent is making an agreement on behalf of the principal.

Scope of Authority

The range or extent of power granted to an individual or entity to act on behalf of another, particularly in legal or contractual contexts.

Expressed Agency

An agency created in a written or oral agreement. Also called agency by agreement.