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Galaxy United, Inc. 2009 Income Statement ($ inthousands) Net sales $5,710 Less: Cost of goods sold 4,070 Less: Depreciation 420 Earnings before interest and taxes

Galaxy United, Inc. 2009 Income Statement ($ inthousands)
Net sales $5,710
Less: Cost of goods sold 4,070
Less: Depreciation

420

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 $1,330 $1,190
Accounts rec. 970 840 Long-term debt 720 500
Inventory

1,490

1,970

Common stock $3,150 $3,407
Total $2,520 $2,980 Retained earnings

910

1,183

Net fixed assets

3,590

3,300

Total assets

$6,110

$6,280

Total liab. & equity

$6,110

$6,280

What is the debt-equity ratio for 2009?

.37.27.47.23.45

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