Refer to the following selected financial information from a company. Compute the company’s debt-to-equity ratio for Year 2.     Year 2 Year 1 Net sales $ 484,500 $ 427,450 Cost of goods sold 277,500 251,320 Interest expense 10,900 11,900 Net income before tax 68,450 53,880 Net income after tax 47,250 41,100 Total assets 319,500 295,200 Total liabilities 175,400 168,500 Total equity 144,100 126,700 Answer: A. 1.22. B. 1.82. C. 3.36. D. 0.82. E. 2.22.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Refer to the following selected financial information from a company. Compute the company’s debt-to-equity ratio for Year 2.
 

  Year 2 Year 1
Net sales $ 484,500 $ 427,450
Cost of goods sold 277,500 251,320
Interest expense 10,900 11,900
Net income before tax 68,450 53,880
Net income after tax 47,250 41,100
Total assets 319,500 295,200
Total liabilities 175,400 168,500
Total equity 144,100 126,700

Answer:


A. 1.22.


B. 1.82.


C. 3.36.


D. 0.82.


E. 2.22.

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