The Following Partial Balance Sheet Is Provided for Groome Company

question 138

Multiple Choice

The following partial balance sheet is provided for Groome Company: $$\begin{array}{l}\text { Liabilities and Stockholders' Equity }\\\begin{array} { | l | r | r | } \hline \text { Accounts payable } & \$ 9,000 \\\hline \text { Salaries payable } & 12,000 \\\hline \text { Bonds payable (Due in 2020) } & 20,000 \\\hline \text { Common stock, no par } & 30,000 \\\hline \text { Retained earnings } & \underline{54,000} \\\hline \text { Total liabilities and stockholder' equity } & \$ \quad \underline{125,000} \\\hline\end{array}\end{array}$$ What is the company's debt to assets ratio?

• A) 49%
• B) 16%
• C) 33%
• D) Cannot be determined with the information given.

---

Definitions:

Former Slaves

Individuals who were emancipated from the condition of slavery, particularly following the Civil War in the United States.

Civil War

A conflict between citizens of the same country, often referred to specifically as the American Civil War which was fought from 1861 to 1865 over issues including states' rights and slavery.

Economic Impact

Refers to the effect of an event, policy, or market fluctuation on the economy of a specific area, including changes in employment, income, and overall economic growth.

Social Impact

The effect an organization's actions have on the well-being of the community or society at large, encompassing both positive and negative consequences.