Porter Co. reported the following on its December 31, 2010, balance sheet:
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Liabilities and Owners' Equity:
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Accounts payable
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$ 3,000
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Notes payable.
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22,000
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Bonds payable
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45,000
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Common stock
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110,000
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Preferred stock
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20,000
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Additional paid-in capital
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70,000
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Retained earnings
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32,000
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Treasury stock.
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12,000
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The debt/equity ratio for Porter Co. in 2010 (rounded) is
a. 20.5%
b. 24.1%
c. 28.7%
d. 31.8%