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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?

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