Question
Galaxy United, Inc. 2009 Income Statement ($ in thousands) Net sales $5,690 Less: Cost of goods sold 4,040 Less: Depreciation 430 Earnings before interest and
| Galaxy United, Inc. 2009 Income Statement ($ in thousands) | ||||||
| Net sales | $5,690 | |||||
| Less: Cost of goods sold | 4,040 | |||||
| Less: Depreciation | 430 | |||||
| Earnings before interest and taxes | 1,220 | |||||
| Less: Interest paid | 31 | |||||
| Taxable Income | 1,189 | |||||
| Less: Taxes | 416 | |||||
| Net income | $ 773 | |||||
|
Galaxy United, Inc. 2008 and 2009 Balance Sheets ($ in thousands) | ||||||
|
| 2008 | 2009 |
|
| 2008 | 2009 |
| Cash | $ 60 | $ 170 |
| Accounts payable | $1,340 | $1,180 |
| Accounts rec. | 980 | 840 |
| Long-term debt | 710 | 510 |
| Inventory | 1,480 | 1,980 |
| Common stock | $3,130 | $3,427 |
| Total | $2,520 | $2,990 |
| Retained earnings | 920 | 1,193 |
| Net fixed assets | 3,580 | 3,320 |
|
|
|
|
| Total assets | $6,100 | $6,310 |
| Total liab. & equity | $6,100 | $6,310 |
| What is the debt-equity ratio for 2009? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
