A Corporation Reports the Following Year-End Balance Sheet Data A) 058
B) 1

question 200

Multiple Choice

A corporation reports the following year-end balance sheet data.The company's equity ratio equals:
$$\begin{array} { | l | r |l |r | } \hline \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 75,000 \\\hline \text { Accounts receivable } & 55,000 & \text { Long-term liabilities } & 35,000 \\\hline \text { Inventory } & 60,000 & \text { Common stock } & 100,000 \\\hline \text { Equipment } & 145,000 & \text { Retained earnings } & 90,000 \\\hline \text { Total assets } & \$ 300,000 & \text { Total liabilities and equity } & \$ 300,000 \\\hline\end{array}$$

• A) 0.58
• B) 1.27
• C) 2.07
• D) 0.37
• E) 0.63

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Definitions:

Backcountry Farmers

Agriculturalists living in rural, often remote areas of the country, historically known for their self-reliance and small-scale farming.

Subsistence Agriculture

Subsistence Agriculture is a type of farming in which the farmers focus on growing enough food to feed themselves and their families, with little to no surplus for trade.

Agricultural Diversification

The practice of growing a variety of crops or engaging in different agricultural activities to reduce risk and increase sustainability in farming.

Crop-Lien System

A credit system widely used in the Southern United States after the Civil War, where farmers used their crops as collateral for loans, leading to cycles of debt and poverty.