Galaxy United, Inc. 2009 Income Statement ($ in thousands) Net sales $5,720 Less
ID: 2674071 • Letter: G
Question
Galaxy United, Inc.2009 Income Statement
($ in thousands)
Net sales $5,720
Less: Cost of goods sold 4,080
Less: Depreciation 420
Earnings before interest and taxes 1,220
Less: Interest paid 32
Taxable Income 1,188
Less: Taxes 416
Net income $ 772
Galaxy United, Inc.
2008 and 2009 Balance Sheets
($ in thousands)
2008 2009 2008 2009
Cash $ 70 $ 160 Accounts payable $1,340 $1,260
Accounts rec. 990 840 Long-term debt 720 510
Inventory 1,500 1,980 Common stock $3,130 $3,348
Total $2,560 $2,980 Retained earnings 920 1,192
Net fixed assets 3,550 3,330
Total assets $6,110 $6,310 Total liab. & equity $6,110 $6,310
What is the debt-equity ratio for 2009?
Explanation / Answer
total assets in 2009 = 6310 total equity in 2009 = common stock in 2009 + retained earnings in 2009 = 3348 + 1192 = 4540 debt = assets - equity = 6310 - 4540 = 1170 debt to equity ratio = 1170/4540 = 38.986784% Please rate my answer and appreciate my time spent :) Thanks in advance!
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