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Problem - The Hudson Corporation reported the following data:
Year 3
Year 2
Year 1
Equipment
$18,000
$16,000
$14,000
Accounts payable
2,300
800
1,000
Cash
8,900
9,300
8,200
Supplies
1,200
1,400
1,700
Accounts receivable
600
400
200
Notes payable
10,300
12,100
14,700
Inventory
2,000
2,200
2,400
Required - What is the company's debt ratio for Year 3?
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Prepare the general journal entries necessary to record these transactions.
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