Use the following information from XYZ Company's balance sheet: Assets: Cash $6,000 Marketable securities Accounts receivable Inventory $3,200 $5,200 $14,400 Property and equipment $68,000 Accumulated depreciation ($5,000) Total asset $91,800 Liabilities and Stockholders' Equity: Accounts payable $3,400 Notes payable (current) $1,400 Mortgage payable (long-term) $1,800 Bonds payable (long-term) $28,600 Common stock, $50 par $24,000 Paid-in capital in excess of par $11,600 Retained earnings $21,000 Total liabilities and stockholders' equity $91,800 The average number of common stock shares outstanding during the year was 840 shares. Net earnings for the year were $6,300. The debt-to-equity ratio is: A. 75% B. 62.2% C. 34.2% D. 22.2%
Use the following information from XYZ Company's balance sheet: Assets: Cash $6,000 Marketable securities Accounts receivable Inventory $3,200 $5,200 $14,400 Property and equipment $68,000 Accumulated depreciation ($5,000) Total asset $91,800 Liabilities and Stockholders' Equity: Accounts payable $3,400 Notes payable (current) $1,400 Mortgage payable (long-term) $1,800 Bonds payable (long-term) $28,600 Common stock, $50 par $24,000 Paid-in capital in excess of par $11,600 Retained earnings $21,000 Total liabilities and stockholders' equity $91,800 The average number of common stock shares outstanding during the year was 840 shares. Net earnings for the year were $6,300. The debt-to-equity ratio is: A. 75% B. 62.2% C. 34.2% D. 22.2%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the following information from XYZ Company's
Transcribed Image Text:Use the following information from XYZ Company's balance sheet:
Assets:
Cash
$6,000
Marketable securities
Accounts receivable
Inventory
$3,200
$5,200
$14,400
Property and equipment
$68,000
Accumulated depreciation
($5,000)
Total asset
$91,800
Liabilities and Stockholders' Equity:
Accounts payable
$3,400
Notes payable (current)
$1,400
Mortgage payable (long-term)
$1,800
Bonds payable (long-term)
$28,600
Common stock, $50 par
$24,000
Paid-in capital in excess of par
$11,600
Retained earnings
$21,000
Total liabilities and stockholders' equity $91,800
The average number of common stock shares outstanding during the year was 840
shares. Net earnings for the year were $6,300.
The debt-to-equity ratio is:
A. 75%
B. 62.2%
C. 34.2%
D. 22.2%
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