Question
Deacon Corporation has provided the following financial data from its balance sheet and income statement: Year 2 Year 1 Total assets $ 1,320,000 $ 1,313,700
Deacon Corporation has provided the following financial data from its balance sheet and income statement:
| Year 2 | Year 1 | |||||
| Total assets | $ | 1,320,000 | $ | 1,313,700 | ||
| Total liabilities | $ | 586,000 | $ | 461,700 | ||
| Total stockholders' equity | $ | 734,000 | $ | 852,000 | ||
| Net operating income (income before interest and taxes) | $ | 69,515 | ||||
| Interest expense | $ | 32,000 | ||||
The companys debt-to-equity ratio at the end of Year 2 is closest to:
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
4th Edition
0132423502, 978-0132423502
