The Following Partial Balance Sheet Is Provided for Groome Company

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

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

Correct Answer:

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