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question16

The following information is given for Rafea Corporation.

Rafea Corporation

Balance Sheet

December 31, 2016

Assets	Liabilities
Cash	$ 20,300	Accounts payable	$ 82,400
Marketable securities	33,000	Bonds payable	215,300
Accounts receivable	74,200	Common stock	78,900
Inventory	82,400	Paid-in-capital	37,600
Fixed assets	258,500	Retained earnings	54,200
	468,400		468,400

Which of the following can be inferred from the data?

• The company has a debt-to-equity ratio of 1.74.

• The company has a current ratio of 1.13.

• The company has a debt-to-equity ratio of 0.71.

• The company has a current ratio of 1.51.