Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in S millions) Liabilities and 2006 2005 Stockholders' Equity 2006 2005 Assets Current Assets Cash Current Liabilibes 73.5 59 58.5 Accounts payable Notes payable / 39.6 short-tem debt Current maturities of 42.9 long-term debt 3.0 Other current labilities 87.8 Accounts recelvable 559 9.7 9.6 Inventories 46 8 40.8 36.9 Other current assets 6.1 6.0 12.0 Total current assets 167.8 144.0 Total curent liabilities 1443 132.0 Long - Tem Assets Land Long-Term Liabilibes 655 62.1 Long-term debt 231.4 1689 91.5 Capital lease obligations Buildings Equipment Less accumulated depreciation Net property, plant, and equipment Goodwill 109.6 1162 996 (57.7) (525) Deferred taxes 22.8 222 2336 200.7 Other long-term labilities 60.0 63.0 Total long-term kabilities 2542 1911 -- 42.0 Total liabilities Other long - term assets Total long - term assets 398.5 323 1 3566 2427 Stockholders' Equity 125.9 636 Total liabilities and 524.4 386.7 Stockholders' Equity Total Assets 524 4 386.7 Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to OA 448 OB. 224 OC 1.12 OD. 313
Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in S millions) Liabilities and 2006 2005 Stockholders' Equity 2006 2005 Assets Current Assets Cash Current Liabilibes 73.5 59 58.5 Accounts payable Notes payable / 39.6 short-tem debt Current maturities of 42.9 long-term debt 3.0 Other current labilities 87.8 Accounts recelvable 559 9.7 9.6 Inventories 46 8 40.8 36.9 Other current assets 6.1 6.0 12.0 Total current assets 167.8 144.0 Total curent liabilities 1443 132.0 Long - Tem Assets Land Long-Term Liabilibes 655 62.1 Long-term debt 231.4 1689 91.5 Capital lease obligations Buildings Equipment Less accumulated depreciation Net property, plant, and equipment Goodwill 109.6 1162 996 (57.7) (525) Deferred taxes 22.8 222 2336 200.7 Other long-term labilities 60.0 63.0 Total long-term kabilities 2542 1911 -- 42.0 Total liabilities Other long - term assets Total long - term assets 398.5 323 1 3566 2427 Stockholders' Equity 125.9 636 Total liabilities and 524.4 386.7 Stockholders' Equity Total Assets 524 4 386.7 Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to OA 448 OB. 224 OC 1.12 OD. 313
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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5. Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to:
Transcribed Image Text:Luther Corporation
Consolidated Balance Sheet
December 31, 2006 and 2005 (in S millions)
Liabilities and
2005 Stockholders' Equity
Current Liabilites
Assets
2006
2006
2005
Current Assets
87.8
73.5
58.5 Accounts payable
Notes payable /
39.6 short-term debt
Current maturities of
42.9 long-tem debt
3.0 Other current liabilities
Cash
59
Accounts receivable
55.9
9.7
9.6
Inventories
46.8
40.8
36.9
Other current assets
6.1
6.0
12.0
Total current assets 167.8 144.0
Total current liabilities 144.3
132.0
Long-Term Liabilities
62.1 Long-term debt
109.6 91.5 Capital lease obligations
Long - Term Assets
Land
65.5
231.4
168.9
Buildings
Equipment
Less accumulated
depreciation
Net property, plant, and
еquipment
Goodwill
116.2
99.6
(57.7) (52.5) Deferred taxes
22.8
222
233.6 200.7 Other long-term liabilities
60.0
63.0
Total long-term liabilities
254.2
191.1
--
Other long - term assets
Total long - term assets
42.0 Total liabilities
356.6 242.7 Stockholders' Equity
398,5
323.1
125.9
63.6
Total liabilities and
524.4 386.7 Stockholders' Equity
Total Assets
524. 4
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:
O A. 4.48
O B. 224
OC. 1.12
OD. 3.13
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