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

question 31

Multiple Choice

A corporation reports the following year-end balance sheet data. The company's debt-to-equity 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:

Parameters

Numerical values that summarize data for the entire population.

Mean

The arithmetic mean is computed by summing all the numbers in a set and then dividing by the total number of entries in that set.

Standard Deviation

A gauge for the level of deviation or dispersion within a group of quantities.

μ

The symbol used to represent the population mean in statistics.