The Liabilities and Shareholders’ Equity section of a Statement of Financial Position is shown below. January 1 December 31 Accounts payable $ 32,000 $ 84,000 Accrued liabilities 14,000 11,000 7% bonds payable 95,000 77,000 Common stock ($10 par value) 300,000 300,000 Reserve for bond retirement 12,000 28,000 Retained earnings 155,000 206,000 Total liabilities and shareholders’ equity $608,000 $706,000 The debt/equity ratio is A. 25.6%. B. 33.9%. C. 32.2%. D. 25.1%.
The Liabilities and Shareholders’ Equity section of a Statement of Financial Position is shown below. January 1 December 31 Accounts payable $ 32,000 $ 84,000 Accrued liabilities 14,000 11,000 7% bonds payable 95,000 77,000 Common stock ($10 par value) 300,000 300,000 Reserve for bond retirement 12,000 28,000 Retained earnings 155,000 206,000 Total liabilities and shareholders’ equity $608,000 $706,000 The debt/equity ratio is A. 25.6%. B. 33.9%. C. 32.2%. D. 25.1%.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 7MCQ
Related questions
Question
The Liabilities and Shareholders’ Equity section of a
|
January 1
|
December 31
|
||
Accounts payable
|
$ 32,000
|
$ 84,000
|
||
Accrued liabilities
|
14,000
|
11,000
|
||
7% bonds payable
|
95,000
|
77,000
|
||
Common stock ($10 par value)
|
300,000
|
300,000
|
||
Reserve for bond retirement
|
12,000
|
28,000
|
||
|
155,000
|
206,000
|
||
|
|
|
||
Total liabilities and shareholders’ equity
|
$608,000
|
$706,000
|
||
|
|
|
The debt/equity ratio is
-
A. 25.6%.
-
B. 33.9%.
-
C. 32.2%.
-
D. 25.1%.
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