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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
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
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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%.
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