Use the following selected financial information for Cooler Company to answer the question: Net sales                                            2,870 Cost of goods sold                            1,985 Gross profit                                          885 Operating expenses                             620 Operating profit                                    265 Interest expense                                      40 Earnings before taxes                            225 Income tax expense                                80 Net profit                                               145 Accounts receivable                                70 Inventory                                                150 Total current assets                                260 Total assets                                             860 Accounts payable                                    85 Total current liabilities                           130 Long-term debt                                      240 Total liabilities                                         370 Total stockholders' equity                      490 Total liabilities and equity                       860 Calculate the debt ratio. Show your work.

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
icon
Related questions
Question

Use the following selected financial information for Cooler Company to answer the question:

Net sales                                            2,870

Cost of goods sold                            1,985

Gross profit                                          885

Operating expenses                             620

Operating profit                                    265

Interest expense                                      40

Earnings before taxes                            225

Income tax expense                                80

Net profit                                               145

Accounts receivable                                70

Inventory                                                150

Total current assets                                260

Total assets                                             860

Accounts payable                                    85

Total current liabilities                           130

Long-term debt                                      240

Total liabilities                                         370

Total stockholders' equity                      490

Total liabilities and equity                       860

Calculate the debt ratio.

Show your work.

AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education