Reference no: EM132967602

On December 31, 20X1, Thomson Company had the following account balances:

Accounts Receivable $15,000

Sales Revenues 845,000

Gain on sale of equipment 14,000

Retained earnings (beginning of year, January 1, 20X1) 120,000

Accounts Payable 25,000

Loan Payable 45,000

Cost of goods sold 650,000

Cash 65,000

Inventory 11,000

Common Stock 41,000

Operating expenses 210,000

Dividends 34,000

Unearned Revenue 55,000

Property, plant, and equipment 145,000

Prepaid Rent 50,000

Bonds Payable 35,000

Problem 1: Given these data, what is Thomson's DEBT-TO-EQUITY RATIO as of December 31, 20X1?

Option 1: 0.79

Option 2: 0.56

Option 3: 1.27

Option 4: 1.00

Option 5: 0.99

Option 6: 1.01

Option 7: 0.78

Option 8: 1.88