Apollo Corp reported the following balance sheet:
Cash 28,000 Accounts payable 5,000
Accounts receivable 15,000 Notes Payable 12,000
Inventory 45,000 Accruals 17,000
Net Fixed Assets 122,000 Long-Terms Debt 45,000
Common Stock 10,000
Retained
Earnings 121,000
Total assets 210,000 Total Liab. & Equity 210,000
Apollo Corp's debt ratio is
A) 37.62. B) 32.17. C) 39.45. D) 42.95.
Question 2
The least effective method of protecting against overdrafts generally is to
A)
maintain a larger-than-normal account balance.
B)
arrange for automatic transfers from a savings account.
C)
arrange for a credit-card loan to cover the overdraft.
D)
ignore them since banks do not charge for overdrafts.
