In Its Closing Financial Statements for Its First Year in Business

question 39

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 Runs and Goses' debt-to-equity ratio?

• A)0.91
• B)2.15
• C)0.48
• D)1.12
• E)2.32

---

Definitions:

Common Cold

A viral infectious disease of the upper respiratory tract, characterized by symptoms such as sneezing, sore throat, and congestion, commonly caused by rhinoviruses.

Influenza

A highly contagious viral infection that affects the respiratory system, characterized by fever, cough, and muscle aches.

Allergy

An abnormal immune system response to certain substances, known as allergens, that are typically harmless to most people.

Mild Fatigue

A low level of tiredness or exhaustion that can usually be relieved by rest.