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The Following Partial Balance Sheet Is Provided for Groome Company

Question 79

Multiple Choice

The following partial balance sheet is provided for Groome Company:  Liabilities and stockholders’ Equity  Accounts payable $9,000 Salaries payable 12,000 Bonds payable (due in ten years)  20,000 Common stock, no par 30,000 Retained earnings 54,000‾ Total liabilities and stockholders’ equity $125,000‾\begin{array}{lr}\text { Liabilities and stockholders' Equity }\\\\\text { Accounts payable } & \$ 9,000 \\\text { Salaries payable } & 12,000 \\\text { Bonds payable (due in ten years) } & 20,000 \\\text { Common stock, no par } & 30,000 \\\text { Retained earnings } &\underline{ 54,000} \\\text { Total liabilities and stockholders' equity } &\underline{ \$ 125,000}\end{array} What is the company's debt to assets ratio? (Round your answers to the nearest whole percent.)


A) 49%
B) 16%
C) 33%
D) Cannot be determined with the information given.

Correct Answer:

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