Multiple Choice
Paint Company Following are selected data from Paint Company's financial statements.
Refer to the Paint Company data.
The company's debt-to-equity ratio was 0.83 to 1 in 2012 and 0.89 to 1 in 2011.Which of the following statements is true concerning Paint?
A) The company has a smaller percentage of capital from owners at the end of 2012 than at the end of 2011.
B) The company relied more on creditors for financing during 2012 than in 2011.
C) The company is improving its debt-to-equity ratio.
D) The company appears to be in a weaker position at the end of 2012 to finance capital expenditures from cash flow generated by operating activities.
Correct Answer:
Verified
Correct Answer:
Verified
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