Solved

Rent-A-Center Selected Data from the Financial Statements Are Provided Below

Question 88

Multiple Choice

Rent-a-Center Selected data from the financial statements are provided below:
20152014 Current Assets $12,000$6,000 Long-T eim Assets 14,0008,000 Current Liabilities 4,0006,000 Long-T em Liablities 14,0000Stockholder’s’ Equity 8,0008,000 Net Sales 19,00018,200 Net Income 2,0001.000\begin{array}{lll}& \underline { 2015 }& \underline { 2014 }\\\text { Current Assets } & \$ 12,000 & \$ 6,000 \\\text { Long-T eim Assets } &14,000 & 8,000 \\\text { Current Liabilities } &4,000 & 6,000 \\\text { Long-T em Liablities } &14,000 & 0 \\\text {Stockholder's' Equity } &8,000 & 8,000 \\\text { Net Sales } &19,000 & 18,200 \\\text { Net Income } &2,000 & 1.000\end{array}

-Refer to Rent-a-Center.Which of the following is true regarding the debt management ratios between 2014 and 2015?


A) The debt-to-equity and debt-to-total assets ratios both increased.
B) The debt-to-equity and total debt-to-total assets ratios both decreased.
C) The debt-to-equity and long-term debt-to-equity ratios both decreased.
D) The debt-to-equity ratio decreased and the debt-to-total assets ratios increased.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents