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Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below. Current liabilities $180 Income before interest and taxes $125 10% Bonds, long-term
Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.
Current liabilities | $180 | Income before interest and taxes | $125 |
10% Bonds, long-term | 360 | Interest expense | 36 |
Total liabilities | 540 | Income before tax | 89 |
Stockholders equity | Income tax | 27 | |
Common stock | 200 | Net income | $62 |
Retained earnings | 280 | ||
Total stockholders equity | 480 | ||
Total liabilities and equity | $1,020 |
HHF's debt to equity ratio is (rounded to two decimal places):
A) 1.13.
B) 1.80.
C) 0.75.
D) 0.38.
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