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