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What is the Debt Equity Ratio for this Company? INCOME STATEMENT Particulars Amount Income 56,897,573 Revenue 56,875,221 Interest Earned 22,352 Expenses Cost of Sales: 32,775,264

What is the Debt Equity Ratio for this Company?

INCOME STATEMENT
Particulars Amount
Income 56,897,573
Revenue 56,875,221
Interest Earned 22,352
Expenses
Cost of Sales: 32,775,264
Cost of Goods Sold 32,733,149
Utilities Expense 42,115
Gross Profit:
Operating Expenses: 13,345,676
Salaries Expense 3,255,449
Rent Expense 956,224
Depreciation Expense: Equipment 321,588
Depreciation Expense: Building 459,887
Bad Debt Expense 896,338
Insurance Expense 1,100,365
Interest Expense 1,555,300
Income Tax Expense 4,800,525
Operating Profit: 18,397,451
Profit: 10,776,633
BALANCE SHEET
Particulars Amount
Assets
Current Assets: 21,322,431
Cash 2,690,644
Accounts Receivable 5,890,887
Inventory 12,595,645
Prepaid Insurance 145,255
Non Current Assets: 29,715,924
Equipment 15,799,800
Accumulated Depreciation: Equipment -3,244,001
Building 18,560,325
Accumulated Depreciation: Building -5,655,225
Land 4,255,025
Total Assets: 51,038,355
Liabilities
Current Liabilities: 11,194,411
Unearned Revenue 668,236
Accounts Payable 5,663,200
Salaries Payable 145,250
Interest Payable 67,500
Income Taxes Payable 4,650,225
Non Current Liabilities: 15,500,000
Long Term Loan @ 5% p.a. 15,500,000
Total Liabilities: 26,694,411
Equity
Common Stock 280,000
Additional Paid In Capital 5,320,000
Retained Earnings 18,743,944
Total Equity: 24,343,944

Question 5 options:

0.93

0.81

0.65

0.42

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