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Assume a company provided the following balance sheet: Current assets: Current liabilities: Cash $ 95,000 Accounts payable $ 90,000 Accounts receivable 50,000 Accrued liabilities 40,000
Assume a company provided the following balance sheet:
Current assets: | Current liabilities: | ||
Cash | $ 95,000 | Accounts payable | $ 90,000 |
Accounts receivable | 50,000 | Accrued liabilities | 40,000 |
Inventory | 150,000 | Total current liabilities | 130,000 |
Total current assets | 295,000 | Bonds payable | 110,000 |
Property, plant & equipment, net | 380,000 | Total liabilities | 240,000 |
Stockholders equity: | |||
Common stock | 170,000 | ||
Retained earnings | 265,000 | ||
Total stockholders equity | 435,000 | ||
Total assets | $ 675,000 | Total liabilities and stockholders equity | $ 675,000 |
The debt-to-equity ratio is closest to
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