A Corporation Reports the Following Year-End Balance Sheet Data A) 058
B) 2

Multiple Choice

A corporation reports the following year-end balance sheet data. The company's equity ratio equals: $$\begin{array} { l | r | l | r } \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 75,000 \\\hline \text { Accounts receivable } & 55,000 & \text { Long-term liabilities } & 35,000 \\\hline \text { Inventory } & 60,000 & \text { Common stock } & 100,000 \\\hline \text { Equipment } & \underline { 145,000 } & \text { Retained earnings } & \$ 90,000 \\\hline \text { Total assets } & \$ 300,000 & \text { Total liabilities and equity } & \$ 300,000 \\\hline\end{array}$$

A) 0.58
B) 2.07
C) 0.63
D) 1.27
E) 0.37