The following financial information was taken from a firm's accounting records on December 31, 2013. Use this information to determine the items below. $$\begin{array} { l r }
\text { Accounts Payable } & \$ 140,000 \
\text { Bonds Payable, 2020 } & 100,000 \
\text { Common Stock ( } \$ 25 \text { par value) } & 200,000 \
\text { Retained Earnings } & 230,000
\end{array}$$ Market price of the common stock on December 31 was $50.
(1) Ratio of stockholders' equity to total equities.
(2) Ratio of stockholders' equity to total liabilities.
(3) Book value per share of common stock.

Question

The following financial information was taken from a firm's accounting records on December 31, 2013. Use this information to determine the items below. $$\begin{array} { l r } 
\text { Accounts Payable } & \$ 140,000 \
\text { Bonds Payable, 2020 } & 100,000 \
\text { Common Stock ( } \$ 25 \text { par value) } & 200,000 \
\text { Retained Earnings } & 230,000
\end{array}$$ Market price of the common stock on December 31 was $50.
(1) Ratio of stockholders' equity to total equities.
(2) Ratio of stockholders' equity to total liabilities.
(3) Book value per share of common stock.

Quizplus · Accepted Answer

The Answer of The following financial information was taken from a firm's accounting records on December 31, 2013. Use this information to determine the items below. $$\begin{array} { l r } 
\text { Accounts Payable } & \$ 140,000 \
\text { Bonds Payable, 2020 } & 100,000 \
\text { Common Stock ( } \$ 25 \text { par value) } & 200,000 \
\text { Retained Earnings } & 230,000
\end{array}$$ Market price of the common stock on December 31 was $50.
(1) Ratio of stockholders' equity to total equities.
(2) Ratio of stockholders' equity to total liabilities.
(3) Book value per share of common stock.

The Following Financial Information Was Taken from a Firm's Accounting