21) A company's debt ratio is increasing every year and currently stands at 0.90. This indicates: A) an improving financial position. B) an increase in financial risk. C) a greater ability to pay current and long-term liabilities. D) a company that is going bankrupt. 22) Sendik's Food Store has the following Trial Balance as of March 31, 2012. Determine the current ratio. Account Debit Credit Cash $5,000 Short-Term Investments 5,500 Accounts Receivable 3,800 Inventory 3,000 Supplies 3,400 Land 28,000 Building 50,000 Accumulated Depreciation—Building $10,000 Store Equipment 27,000 Accumulated Depreciation—Store Equipment 15,625 Accounts Payable 9,000 Notes Payable due in one year 4,500 Salaries Payable 1,000 Income Tax Payable 12,000 Common Stock 31,655 Retained Earnings 4,920 Revenue 63,000 Rent Expense 7,000 Salaries Expense 14,000 Depreciation Expense—Building 3,500 Depreciation Expense—Store Equipment 1,500 ________ TOTALS $151,700 $151,700 23) Lori's Bath Supplies has the following Trial Balance as of March 31, 2012. Determine the debt ratio. Account Debit Credit Cash $10,500 Accounts Receivable 3,800 Inventory 3,000 Store Supplies 1,900 Prepaid Insurance 1,500 Land 28,000 Building 50,000 Accumulated Depreciation—Building $10,000 Store Equipment 27,000 Accumulated Depreciation—Store Equipment 15,625 Accounts Payable 9,000 Notes Payable due in one year 4,500 Salaries Payable 1,000 Income Tax Payable 12,000 Common Stock 31,655 Retained Earnings 4,920 Revenue 63,000 Rent Expense 7,000 Salaries Expense 14,000 Depreciation Expense—Building 3,500 Depreciation Expense—Store Equipment 1,500 ________ TOTALS $151,700 $151,700

21) A company's debt ratio is increasing every year and currently stands at 0.90. This indicates: A) an improving financial position. B) an increase in financial risk. C) a greater ability to...

21) A company's debt ratio is increasing every year and currently stands at 0.90. This indicates:

A) an improving financial position.

B) an increase in financial risk.

C) a greater ability to pay current and long-term liabilities.

D) a company that is going bankrupt.

22) Sendik's Food Store has the following Trial Balance as of March 31, 2012. Determine the current ratio.

Account	Debit	Credit
Cash	$5,000
Short-Term Investments	5,500
Accounts Receivable	3,800
Inventory	3,000
Supplies	3,400
Land	28,000
Building	50,000
Accumulated Depreciation—Building		$10,000
Store Equipment	27,000
Accumulated Depreciation—Store Equipment		15,625
Accounts Payable		9,000
Notes Payable due in one year		4,500
Salaries Payable		1,000
Income Tax Payable		12,000
Common Stock		31,655
Retained Earnings		4,920
Revenue		63,000
Rent Expense	7,000
Salaries Expense	14,000
Depreciation Expense—Building	3,500
Depreciation Expense—Store Equipment	1,500	________
TOTALS	$151,700	$151,700

23) Lori's Bath Supplies has the following Trial Balance as of March 31, 2012. Determine the debt ratio.

Account	Debit	Credit
Cash	$10,500
Accounts Receivable	3,800
Inventory	3,000
Store Supplies	1,900
Prepaid Insurance	1,500
Land	28,000
Building	50,000
Accumulated Depreciation—Building		$10,000
Store Equipment	27,000
Accumulated Depreciation—Store Equipment		15,625
Accounts Payable		9,000
Notes Payable due in one year		4,500
Salaries Payable		1,000
Income Tax Payable		12,000
Common Stock		31,655
Retained Earnings		4,920
Revenue		63,000
Rent Expense	7,000
Salaries Expense	14,000
Depreciation Expense—Building	3,500
Depreciation Expense—Store Equipment	1,500	________
TOTALS	$151,700	$151,700

May 15, 2022