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Given the following information for Blue Bell Company for last year: Net sales (all on account) $5,200,000 Cost of goods sold 2,080,000 Interest expense 240,000

Given the following information for Blue Bell Company for last year:

Net sales (all on account) $5,200,000
Cost of goods sold 2,080,000
Interest expense 240,000
Income tax expense 280,000
Net income 420,000
Income tax rate 40%
Total assets:
January 1 $1,800,000
December 31 2,400,000
Shareholders' equity (all common):
January 1 1,500,000
December 31 1,600,000
Current assets, December 31 700,000
Quick assets, December 31 400,000
Current liabilities, December 31 300,000
Net accounts receivable:
January 1 200,000
December 31 180,000
Inventory:
January 1 210,000
December 31 250,000

Refer to Exhibit 4-1. Blue Bell's debt to assets ratio December 31 was

26.2%

16.7%

42.8%

33.3%

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