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Westmoreland Company
Following Are Selected Data from Westmoreland Company's Financial

question 51

Multiple Choice

Westmoreland Company
Following are selected data from Westmoreland Company's financial statements.

20182017 Current liabilities $230,000$160,000 Long-term debt 120,000320,000 Stockhol ders’ equity 420,000540,000 Cash payments for additions to plant and equipment 45,00032,000 Net cash flow from operating activities 80,00051,000 Interest and principal payments 12,0008,000 Net operating cash flows before interest and taxes 68,00043,000 Net income 90,00072,000 Interest expense 8,50011,500 Income taxes 16,00014,500 Dividends paid 15,00030,000\begin{array}{lrr}&2018&2017\\\text { Current liabilities } & \$ 230,000 & \$ 160,000 \\\text { Long-term debt } & 120,000 & 320,000 \\\text { Stockhol ders' equity } & 420,000 & 540,000 \\\text { Cash payments for additions to plant and equipment } & 45,000 & 32,000 \\\text { Net cash flow from operating activities } & 80,000 & 51,000 \\\text { Interest and principal payments } & 12,000 & 8,000 \\\text { Net operating cash flows before interest and taxes } & 68,000 & 43,000 \\\text { Net income } & 90,000 & 72,000 \\\text { Interest expense } & 8,500 & 11,500 \\\text { Income taxes } & 16,000 & 14,500 \\\text { Dividends paid } & 15,000 & 30,000\end{array}
-Refer to the Westmoreland Company data.
Westmoreland's debt-to-equity ratio for 2018 is

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Definitions:

Information Dependence

The extent to which individuals or organizations rely on others for obtaining information necessary for making decisions or carrying out tasks.

Social Information Processing Theory

A theory that suggests individuals give meaning to their interactions and relationships in online spaces based on textual and non-verbal cues over time.

Information Dependence

Refers to the extent to which individuals or organizations rely on others for obtaining information necessary for their decision-making processes.

Internalization

The process of accepting a set of norms or beliefs as integral to one's own belief system or behavior.

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