2019 2020 2019 2020 Cash $1,200 $2,400 Accounts payable $4,400 $1,000 Accounts receivable $9,200 $1,100 Wages payable $4,000 $2,800 Inventory $5,500 $7,500 Utilities payable $800 $1,000 Prepaid rent $3,200 $6,000 Note payable $27,000 $30,000 Equipment $56,000 $56,000 Interest payable $2,200 $4,600 Accum. depreciation ($41,000) ($43,000) Common stock $2,000 $2,000 Land $10,000 $12,400 Retained earnings $3,700 $1,000 $44,100 $42,400 $44,100 $42,400 What is the company's approximate debt-to-equity ratio for 2020?
2019 2020 2019 2020 Cash $1,200 $2,400 Accounts payable $4,400 $1,000 Accounts receivable $9,200 $1,100 Wages payable $4,000 $2,800 Inventory $5,500 $7,500 Utilities payable $800 $1,000 Prepaid rent $3,200 $6,000 Note payable $27,000 $30,000 Equipment $56,000 $56,000 Interest payable $2,200 $4,600 Accum. depreciation ($41,000) ($43,000) Common stock $2,000 $2,000 Land $10,000 $12,400 Retained earnings $3,700 $1,000 $44,100 $42,400 $44,100 $42,400 What is the company's approximate debt-to-equity ratio for 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:2019
2020
2019
2020
Cash
$1,200
$2,400
Accounts payable
$4,400
$1,000
Accounts receivable
$9,200
$1,100
Wages payable
$4,000
$2,800
Inventory
$5,500
$7,500
Utilities payable
$800
$1,000
Prepaid rent
$3,200
$6,000
Note payable
$27,000
$30,000
Equipment
$56,000
$56,000
Interest payable
$2,200
$4,600
Accum. depreciation
($41,000) ($43,000)
Common stock
$2,000
$2,000
Land
$10,000 $12,400
Retained earnings
$3,700
$1,000
$44,100
$42,400
$44,100
$42,400
What is the company's approximate debt-to-equity ratio for 2020?
O 12.97
6.82
O 13.13
9.06
O None of the above
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