Question

1. Johnston & Myers Inc. had the following balance sheet data for a recent year: Current...

1. Johnston & Myers Inc. had the following balance sheet data for a recent year:

Current assets $720,000
Property, plant, and equipment (net) 1,110,000
Current liabilities 230,000
Long-term liabilities 450,000
Common stock, $10 par 250,000
Retained earnings 1,000,000


What is Johnston & Myers Inc.’s ratio of fixed assets to long-term liabilities?

a. 0.9

b. 2.1

c. 4.1

d. None of these choices are correct.

2. Johnston & Myers Inc. had the following balance sheet data for a recent year:

Current assets $720,000
Property, plant, and equipment (net) 1,110,000
Current liabilities 230,000
Long-term liabilities 450,000
Common stock, $10 par 250,000
Retained earnings 1,000,000


What is Johnston & Myers Inc.’s ratio of liabilities to stockholders’ equity?

a. 0.5

b. 0.7

c. 0.9

d. None of these choices are correct.

Business   Accounting   
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Homework Answers

Answer #1

1) Option (D) None of the choices are correct

2) Option (A) 0.5

Explanation:

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