Question
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
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?
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The company has a debt-to-equity ratio of 0.71.
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The company has a current ratio of 1.13.
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The company has a debt-to-equity ratio of 1.74.
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The company has a current ratio of 1.51.
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