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Galaxy United, Inc. 2009 Income Statement ($ inthousands) Net sales $5,720 Less: Cost of goods sold 4,070 Less: Depreciation 430 Earnings before interest and taxes

Galaxy United, Inc. 2009 Income Statement ($ inthousands)
Net sales $5,720
Less: Cost of goods sold 4,070
Less: Depreciation

430

Earnings before interest and taxes 1,220
Less: Interest paid

29

Taxable Income 1,191
Less: Taxes

417

Net income

$ 774

Galaxy United, Inc. 2008 and 2009 Balance Sheets ($ in thousands)

2008

2009

2008

2009

Cash $ 75 $ 170 Accounts payable $1,320 $1,220
Accounts rec. 980 850 Long-term debt 710 520
Inventory

1,470

1,990

Common stock $3,155 $3,396
Total $2,525 $3,010 Retained earnings

910

1,184

Net fixed assets

3,570

3,310

Total assets

$6,095

$6,320

Total liab. & equity

$6,095

$6,320

What is the debt-equity ratio for 2009?

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