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A companys assets consist of $200,000 of cash, $400,000 of accounts receivable, $600,000 of inventory, and $1,500,000 of plant and equipment. Its liabilities consist of
A companys assets consist of $200,000 of cash, $400,000 of accounts receivable, $600,000 of inventory, and $1,500,000 of plant and equipment. Its liabilities consist of $100,000 of accounts payable, $150,000 of accruals, and $800,000 of long-term debt. The companys annual sales are $5,000,000, its earnings before interest and taxes are $700,000, and its net income is $300,000. What is the companys debt/equity ratio? Question 4 options: A) 44.8% B) 54.2% C) 58.6% D) 63.6% E) 67.4%
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