Question
HW 1E Question 6 American Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate the firm's
HW 1E
Question 6
American Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, calculate the firm's total debt-to-equity ratio.
Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).
Balance Sheet December 31, 2011
Cash and marketable securities $143,000Accounts payable$278,000
Accounts receivable $354,000 Notes payable $87,000
Inventories $672,000Accrued expenses $65,000
Prepaid expenses $12,500 Total current liabilities $430,000
Total current assets $1,181,500Long-term debt $284,000
Gross fixed assets $1,675,000Par value and paid-in-capital $228,000
Less: accumulated depreciation $500,000Retained Earnings $1,414,500
Net fixed assets$1,175,000 Common Equity $1,642,500
Total assets $2,356,500Total liabilities and owner's equity $2,356,500
Income statement, Year of 2010
Net sales (all credit) $3,136,600.00
Less: Cost of goods sold $2,195,620.00
Selling and administrative expenses $345,000.00
Depreciation expense $146,000.00
EBIT $449,980.00
Interest expense $45,300.00
Earnings before taxes $404,680.00
Income taxes $161,872.00
Net income$242,808.00
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