Refer to the Following Selected Financial Information from Winterfell Company

question 162

Multiple Choice

Refer to the following selected financial information from Winterfell Company. Compute the company's debt to equity for Year 2. $\begin{array}{lrr} & \text { Year 2 } & \text { Year 1 } \\\text { Total assets } & \$ 327,800 & \$ 301,000 \\\text { Total liabilities } & 171,400& 169,300 \\\text { Total equity } & 156,400 & 131,700\end{array}$

• A) 0.9.
• B) 1.1.
• C) 0.5.
• D) 1.9.
• E) 2.1.

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Definitions:

Cost Of Goods Sold

The immediate expenses incurred in producing goods that a company sells, including materials and the workforce.

Inventory Records

Documentation that tracks the quantity, cost, and type of products a company has in stock at any given time.

FIFO Perpetual

An inventory valuation method that treats the first items purchased as the first ones sold, continually updating inventory records.

Beginning Inventory

The value of all stock held by a company at the start of an accounting period, before any purchases or sales.