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Use the following information to answer the questions: Assets Liabilities and Equity Cash 13,000 Accounts payable 17,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable

Use the following information to answer the questions:

Assets Liabilities and Equity
Cash 13,000 Accounts payable 17,000
Marketable securities 2,000 Notes payable 6,000
Accounts receivable 3,000 Current liabilities 23,000
Inventory 24,000 Long-term debt 95,000
Current assets 42,000 Total liabilities 118,000
Machines 34,000 Paid-in capital 20,000
Real estate 80,000 Retained earnings 18,000
Net fixed assets 114,000 Equity 38,000
Total assets 156,000 Total liab. & equity 156,000

Line item Value
Sales 69,000
- Costs 56,580
- Depreciation 2,000
= EBIT 10,420
- Interest 800
= Taxable income 9,620
- Taxes 3,175
= Net income 6,445

Part 1: What is the total debt to total capital ratio?

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