FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Given the following information, what is the ratio of liabilities to stockholders' equity?
Fixed assets (net) at year-end
$400,000
Average fixed assets
450,000
Total assets
500,000
Long-term liabilities
300,000
Total liabilities
350,000
Total stockholders' equity
250,000
Total liabilities and stockholders' equity
500,000
Interest expense
5,000
Income before income tax
150,000
Net income
100,000
O a. 0.7
O b. 1.2
O c. 1.4
O d. 0.6
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Transcribed Image Text:Given the following information, what is the ratio of liabilities to stockholders' equity? Fixed assets (net) at year-end $400,000 Average fixed assets 450,000 Total assets 500,000 Long-term liabilities 300,000 Total liabilities 350,000 Total stockholders' equity 250,000 Total liabilities and stockholders' equity 500,000 Interest expense 5,000 Income before income tax 150,000 Net income 100,000 O a. 0.7 O b. 1.2 O c. 1.4 O d. 0.6
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