Chestnut, Inc. reported the following balances on its balance sheet at December 31, Year 1: Total Assets $460,000 Total Liabilities $ 170,000 Common Stock160,000 Retained Earnings130,000 Total Equity 290,000 Total Liabilities and Equity $460,000 On January 1, Year 2, Chestnut purchased equipment for $40,000 on account. What is the company's debt-to-assets ratio immediately after the purchase of the equipment?
A. 0.46
B. 0.42
C. 0.34
D. 0.37
Answer: B
You might also like to view...
Users access the database
a. by direct query b. by developing operating software c. by constantly interacting with systems programmers d. all of the above
Which of the following is the most logical budget-setting method?
A) percentage-of-sales method B) affordable method C) competitive-parity method D) objective-and-task method E) push method
A relatively stable pattern of traits and characteristics that help shape a person’s behavior and make them unique is:
a. experience b. individual differences c. personality d. self-leadership skills
Once the useful life of a depreciable asset has been estimated and the amount to be depreciated each year has been determined, the amounts can not be changed
Indicate whether the statement is true or false