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:

Transpiration

Evaporation of water from aboveground plant parts.

Polar Latitudes

Regions near the poles of the Earth, characterized by extreme cold and seasonal variations in daylight.

Equatorial Latitudes

The region near the equator, characterized by a hot climate year-round due to receiving the most direct sunlight.

Temperate Latitudes

Regions of the Earth lying between the tropics and the polar circles, characterized by moderate temperatures and distinct seasonal changes.