=+EX 17-12 Inventory analysis obj. 2

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a. Dell inventory turnover, 76.8 The following data were taken from the financial statements of Weal Construction Inc.

for December 31, 2010 and 2009:

Dec. 31, 2010 Dec. 31, 2009 Accounts payable $ 300,000 $ 280,000 Current maturities of serial bonds payable 400,000 400,000 Serial bonds payable, 10%, issued 2005, due 2015 2,000,000 2,400,000 Common stock, $1 par value 100,000 100,000 Paid-in capital in excess of par 1,000,000 1,000,000 Retained earnings 3,400,000 2,750,000 The income before income tax was $720,000 and $560,000 for the years 2010 and 2009, respectively.

a. Determine the ratio of liabilities to stockholders’ equity at the end of each year.

Round to one decimal place.