In Its Closing Financial Statements for Its First Year in Business

question 25

Multiple Choice

In its closing financial statements for its first year in business, the Runs and Goses Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of$3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of$1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218.
-What is the equity multiplier for Runs and Goses?

• A)4.59 times
• B)2.35 times
• C)0.48 times
• D)1.12 times
• E)1.91 times

---

Definitions:

Independence Struggle

An Independence Struggle is a conflict and series of actions taken by a country or region to gain sovereignty and self-government, often from colonial or oppressive rulers.

Algeria

A country in North Africa with a Mediterranean coastline and a Saharan desert interior.

Racial Inequality

The unequal treatment or perceptions of individuals based on their race or ethnicity, manifesting in various aspects of life including employment, education, and healthcare.

Apartheid

The system of institutionalized racial segregation and discrimination that existed in South Africa from 1948 until the early 1990s.