Refresher SFA 3-4

Required information The following information applies to the questions displayed below.] Nabisco Company's balance sheet accounts follow: At December 31 2010 2009 2008 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by $ 36,229 42,780 $ 44,562 106,073 76,377 57,087 137,408 98,92962,038 4,903 335,317 311,062 272,710 $626,575 $540,151 $441,300 11,54811,003 $157,577 $ 94,024 $57,087 116,618 127,962 99,478 mortgages on plant assets Common stock, $10 par valuee Retained earnings Total liabilities and equity 163,500 163,500 163,500 188,880 154,665 121,235 $626,575 $540,151 $441,300 The company's income statements for the years ended December 31, 2010 and 2009, follow: 2010 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2009 $685,000 $557,000 $417,850 207,282 8,175 12,900 $356,265 141,971 8,960 12,450 646,207 $ 38,793 $2.37 519,646 $ 37,354 $ 2.28 Compare the company's long-term risk and capital structure positions at the end of 2010 and 2009 by computing the following ratios. From Wild: Fundamental Accounting Principles, 19e (0073379549): E17-9] (b) Debt-to-equity ratio. (Round your answers to 2 decimal places.) 2010 2009 to to