Selected financial data for Wilmington Corporation is presented below.   WILMINGTON CORPORATION Balance Sheet As of December 31   Year 7 Year 6 Current Assets     Cash and cash equivalents $    634,527 $   335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009       Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430       Current Liabilities     Short-term borrowings $   306,376 $    170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431 1,033,785       Long-term debt 500,000 300,000 Deferred income taxes 236,519 288,644 Total Liabilities $1,885,950 $1,622,429       Common stock $   425,250 $   125,000 Additional paid-in capital 356,450 344,335 Retained earnings 980,330 342,666 Total Stockholders' Equity 1,762,030 812,001 Total Liabilities and Stockholders' Equity $3,647,980 $2,434,430   Selected Income Statement Data for the year ending December 31, Year 7: Net sales   $4,885,340 Cost of goods sold   (2,906,526) Selling expenses   (884,685) Operating income   1,094,129 Interest expense   (55,240) Earnings before income taxes   1,038,889 Income tax expense   (401,225) Net income   $   637,664       Selected Statement of Cash Flow Data for the year ending December 31, Year 7: Cash flows from operations   $1,601,692 Capital expenditures   $745,862   Wilmington Corporation's total debt to equity ratio in Year 7 was:

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
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Selected financial data for Wilmington Corporation is presented below.

 

WILMINGTON CORPORATION

Balance Sheet

As of December 31

 

Year 7

Year 6

Current Assets

 

 

Cash and cash equivalents

$    634,527

$   335,597

Marketable securities

166,106

187,064

Accounts receivable (net)

284,226

318,010

Inventories

466,942

430,249

Prepaid expenses

60,906

28,060

Other current assets

83,053

85,029

Total Current Assets

1,695,760

1,384,009

 

 

 

Property, plant and equipment

1,384,217

625,421

Long-term investment

568,003

425,000

Total Assets

$3,647,980

$2,434,430

 

 

 

Current Liabilities

 

 

Short-term borrowings

$   306,376

$    170,419

Current portion of long-term debt

155,000

168,000

Accounts payable

279,522

314,883

Accrued liabilities

301,024

183,681

Income taxes payable

107,509

196,802

Total Current Liabilities

1,149,431

1,033,785

 

 

 

Long-term debt

500,000

300,000

Deferred income taxes

236,519

288,644

Total Liabilities

$1,885,950

$1,622,429

 

 

 

Common stock

$   425,250

$   125,000

Additional paid-in capital

356,450

344,335

Retained earnings

980,330

342,666

Total Stockholders' Equity

1,762,030

812,001

Total Liabilities and Stockholders' Equity

$3,647,980

$2,434,430

 

Selected Income Statement Data for the year ending December 31, Year 7:

Net sales

 

$4,885,340

Cost of goods sold

 

(2,906,526)

Selling expenses

 

(884,685)

Operating income

 

1,094,129

Interest expense

 

(55,240)

Earnings before income taxes

 

1,038,889

Income tax expense

 

(401,225)

Net income

 

$   637,664

 

 

 

Selected Statement of Cash Flow Data for the year ending December 31, Year 7:

Cash flows from operations

 

$1,601,692

Capital expenditures

 

$745,862

 

Wilmington Corporation's total debt to equity ratio in Year 7 was:

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