2A2J THE LIABILITIES AND SHAREHOLDERS’ EQUITY SECTION OF MICA CORPORA...
44.
CSO: 2A2b
LOS: 2A2j
The Liabilities and Shareholders’ Equity section of Mica Corporation’s Statement of
Financial Position is shown below.
January 1
December 31
Accounts payable
$ 32,000
$ 84,000
Accrued liabilities
14,000
11,000
7% bonds payable
95,000
77,000
Common stock ($10 par value)
300,000
300,000
Reserve for bond retirement
12,000
28,000
Retained earnings
155,000
206,000
Total liabilities and shareholders’ equity
$608,000
$706,000
Mica’s debt/equity ratio is
a.
25.1%.
b.
25.6%.
c.
32.2%.
d.
33.9%.