Selected information from Ingot Company' s financial statements for the year ended December 31,2004, was as follows prior to the consideration of its impaired asset write-down ( in $ ) :
A．Cash
B．120000
C．Accounts Payable
D．290000
E．Accounts Receivable
F．200000
G．Deferred Tax Liability
H．740000
I．Inventory
J．300000
K．Long-term Debt
L．
800000
M．Property, Plant & Eq.(net)
N．1700000
O．Conunon Stock
P．490000
Q．Total Assets
R．2320000
S．Retained Earnings
T．2320000
参考答案：A
解析：The write-down of the excavation machine in the amount of ( $1600000 - $ 800000 - $ 500000=$ 300000) decreases retained earnings from $490000 to $190000. The total debt to equity ratio increases from ( $ 290000 + $ 740000 )/( $ 290000 + $ 740000 + $800000 + $490000) = 0.44 to ( $290000 + $740000)/( $290000 + $740000 + $ 800000 + $190000) =0.51.
