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A Partial Balance Sheet for Captain D's Sportswear Is Shown

Question 85

Multiple Choice

A partial balance sheet for Captain D's Sportswear is shown below.(dollars in thousands) The debt to equity ratio is (rounded to two decimal places) :
 Assets:  Liabilities:  Cash $60 Accounts payable $240 Accounts receivable (net)  170 Other liabilities 80 Investments 50 Total current liabilities 320 Inventory 200 Long-term liabilities 110 Prepaid rent 25 Total liabilities 430 Total current assets 505 Stockholders’ equity:  Property & Equipment, (net)  255 Common stock 150 Retained earnings 180___ Total stockholders’ equity 330 Total assets $760 Total liabilities and equity $760\begin{array} { | l | r | l | r | } \hline \text { Assets: } & & \text { Liabilities: } & \\\hline \text { Cash } & \$ 60 & \text { Accounts payable } & \$ 240 \\\hline \text { Accounts receivable (net) } & 170 & \text { Other liabilities } & \underline{ 80 } \\\hline \text { Investments } & 50 & \text { Total current liabilities } & 320 \\\hline \text { Inventory } & 200 & \text { Long-term liabilities } & \underline { 110 } \\\hline \text { Prepaid rent } & \underline{25} & \text { Total liabilities } & \underline { 430 } \\\hline \text { Total current assets } & \underline { 505 } & \text { Stockholders' equity: } & \\\hline \text { Property \& Equipment, (net) } & \underline { 255 } & \text { Common stock } & 150 \\\hline & & \text { Retained earnings } & \underline { 180 } \\\hline &\_\_\_ & \text { Total stockholders' equity } & \underline { 330 } \\\hline \text { Total assets } & \underline{\$ 760} & \text { Total liabilities and equity } & \underline{\$ 760} \\\hline\end{array}


A) 0.33.
B) 0.77.
C) 1.17.
D) 1.30.

Correct Answer:

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