question #3

Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) 2006 2006 2005 Assets Current Assets Cash 56.9 87 73.5 Liabilities and 2005 Stockholders' Equity Current Liabilities 58.5 Accounts payable Notes payable/ 39.6 short-term debt Current maturities of 42.9 long-term debt 3.0 Other current liabilities Accounts receivable 55.1 9.6 9.6 36.9 Inventories Other current assets 45.8 5.8 38.3 6.0 12.0 TI TALL-LL- O A. 4.47 OB. 2.23 O C. 1.12 D. 3.13 Other current assets Total current assets 5.8 163.6 3.0 144.0 Other current liabilities 6.0 Total current liabilities 140.9 12.0 132.0 231.9 Long-Term Liabilities Long-term debt Capital lease obligations 66.2 110.3 115 168.9 62.1 91.5 99.6 Long-Term Assets Land Buildings Equipment Less accumulated depreciation Net property, plant, and equipment Goodwill Other long-term assets (57.3) (52.5) Deferred taxes 22.8 22.2 234.2 60.0 63.0 200.7 Other long-term liabilities Total long-term liabilities 42.0 Total liabilities 254.7 395.6 191.1 323.1 115 99.6 (57.3) (52.5) Deferred taxes 22.8 22.2 Equipment Less accumulated depreciation Net property, plant, and equipment Goodwill Other long-term assets Total long-term assets 234.2 60.0 63.0 357.2 200.7 Other long-term liabilities Total long-term liabilities 42.0 Total liabilities 242.7 Stockholders' Equity 254.7 395.6 125.2 191.1 323.1 63.6 Total liabilities and Total Assets 520.8 386.7 Stockholders' Equity 520.8 386.7 Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to