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

question 17

Multiple Choice

A corporation reports the following year-end balance sheet data. The company's debt ratio equals: $\begin{array}{lrrr}\text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 5,000 \\\text { Accounts receivable } & 55,000 & \text { Long-term liabilities } & 35,000 \\\text { Inventory } & 60,000 & \text { Common stock } & 100,000 \\\text { Equipment } & 145,000 & \text { Retained earnings } & 90,000 \\\text { Total assets } & \$ 300,000 & \text { Total liabilities and equity } & \$ 300,000 \\\end{array}$

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

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Definitions:

Friendship

A close and trusted relationship between two or more people, typically characterized by mutual affection and support.

Prejudged

To make a decision or form an opinion about something or someone in advance, without full examination or knowledge.

Worthy of Friendship

A philosophical concept referring to qualities that make someone a good friend.

Valid Argument

An argument wherein if the premises are true, the conclusion necessarily follows.