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Below is selected information from Eddie Corporations financial statements: Dec. 31, Year 1 Dec. 31, Year 0 Cash and short-term investments $ 958,245 $ 745,800

Below is selected information from Eddie Corporations financial statements:

Dec. 31, Year 1

Dec. 31, Year 0

Cash and short-term investments

$ 958,245

$ 745,800

Accounts Receivable (net)

125,850

135,400

Inventories

195,650

175,840

Prepaid Expenses and other current assets

45,300

30,860

Total Current Assets

$1,325,045

$1,087,900

Plant, Property and Equipment, net

1,478,320

1,358,700

Intangible Assets

125,600

120,400

Total Assets

$2,928,965

$2,567,000

Short-term borrowings

$ 25,190

$ 38,108

Current portion of long-term debt

45,000

40,000

Accounts payable

285,400

325,900

Accrued liabilities

916,722

705,891

Income taxes payable

125,400

115,600

Total Current Liabilities

$1,397,712

$1,225,499

Long-term Debt

450,000

430,000

Total Liabilities

$1,847,712

$1,655,499

Shareholders' Equity

$1,081,253

$ 911,501

Total Liabilities and Shareholders' Equity

$2,928,965

$2,567,000

Selected Income Statement Data - for the year ending December 31, Year 1:

Net Sales

$3,210,645

Cost of Goods Sold

(2,310,210)

Operating Income

$ 900,435

Net Income

$ 324,850

Selected Statement of Cash Flow Data - for the year ending December 31, Year 1:

Cash Flows from Operations

$584,750

Interest Expense

42,400

Income Tax Expense

114,200

Eddies Liabilities to Assets Ratio for Year 1 is:

a.

50.1%

b.

95.0%

c.

63.1%

d.

105.1%

3 points

QUESTION 24

Refer to the information for Eddie Corporation. Eddies Year 1 Interest Coverage ratio is:

a.

4.35

b.

1.00

c.

7.66

d.

11.35

3 points

QUESTION 25

Refer to the information for Eddie Corporation. Eddies Year 1 Long-term Debt to Long-Term Capital ratio is:

a.

25.4%

b.

29.4%

c.

34.0%

d.

31.4%

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