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Wetzel Company Has the Following Data 2X132X122X11\begin{array}{lccc}2X13 & 2X12& 2X11\\\hline\end{array} Current Liabilities

Question 63

Multiple Choice

Wetzel Company has the following data:
2X132X122X11\begin{array}{lccc}2X13 & 2X12& 2X11\\\hline\end{array} Current Liabilities:
 Accounts Payable $50$30$20 Wages Payable 20105 Taxes Payable 10515 Current Long-Term Debt 10155 Total Curent Liabilitief $90$60$45\begin{array} { l l l l } \text { Accounts Payable } & \mathbf { \$ } 50 & \mathbf { \$ } 30 & \mathbf { \$ 2 0 } \\\text { Wages Payable } & 20 & 10 & 5 \\\text { Taxes Payable } & 10 & 5 & 15 \\\text { Current Long-Term Debt } & \underline { 10 } & \underline { 15 } & 5 \\\text { Total Curent Liabilitief } & \mathbf { \$ 9 0 } & \mathbf { \$ } 60 & \$ 45\end{array}
Long-Term Liabilities:
 Long-Term Debt354540 Total I iabilities$125$105$85\begin{array}{lccc}\text { Long-Term Debt} &35&45&40 \\\text { Total I iabilities} & \$ 125 & \$ 105 & \$85\end{array}
Stockholders' Equity:
 Common Stock $5 par $50$50$50 Retained Earnings 756040 Total Stockholders’ Equity $125$110$90 Total Liab. & Stk. Equity $250$215$175\begin{array}{llll}\text { Common Stock } \$ 5 \text { par } & \$ 50 & \$ 50 & \$ 50 \\\text { Retained Earnings } & \underline{75} & \underline{60} & \underline{40} \\\text { Total Stockholders' Equity } &\$ 125&\$ 110 & \underline{\$ 90} \\\text { Total Liab. \& Stk. Equity } & \$ 250 & \$215&\$175\end{array}
What is the total-debt-to-total-assets ratio for Wetzel Company in 2X13? Has the total-debt-to-total-assets ratio improved or not improved since 2X12?


A) 0.14,improved
B) 0.18,improved
C) 0.18,not improved
D) 0.50,improved
E) 0.50,not improved

Correct Answer:

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