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Alpha Company provided the following balance sheet for Year 2: Assets Cash $5,000 Accounts receivable 7,150 Inventory 10,850 Prepaid expenses 1,900 Plant and equipment, net
Alpha Company provided the following balance sheet for Year 2:
Assets | |
---|---|
Cash | $5,000 |
Accounts receivable | 7,150 |
Inventory | 10,850 |
Prepaid expenses | 1,900 |
Plant and equipment, net of depreciation | 30,800 |
Land | 23,500 |
Total assets | $79,200 |
Liabilities and Stockholders' Equity | |
Accounts payable | $3,200 |
Salaries payable | 6,800 |
Bonds payable (due in ten years) | 13,500 |
Common stock, no par | 17,500 |
Retained earnings | 38,200 |
Total liabilities and stockholders' equity | $79,200 |
What is the company's plant assets to long-term liabilities ratio?
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