The Following Partial Balance Sheet Is Provided for Groome Company

The following partial balance sheet is provided for Groome Company: $\begin{array}{|l|r|}\hline \text { Liabilities and Stockholders' Equity } & \\\hline \text { Accounts payable } & \$ \quad 9,000 \\\hline \text { Salaries payable } & 12,000 \\\hline \text { Bonds payable (Due in 2020) } & 20,000 \\\hline \text { Common stock, no par } & 30,000 \\\hline \text { Retained earnings } & \underline { 54,000} \\\hline \text { Total liabilities and stockholder' equity } &\underline { \$ \quad 125,000} \\\hline\end{array}$ What is the company's debt to assets ratio (rounded to nearest whole percent) ?

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

Correct Answer:

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