Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the
Question:
Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, calculate the firm'stotal debt-to-assets ratioratio (also called Debt ratio).
Round the answers to two decimal places in percentage form.
Balance Sheet December 31, 2011
Cash and marketable securities$143,000Accounts payable$278,000Accounts receivable$354,000Notes payable$87,000Inventories$672,000Accrued expenses$65,000Prepaid expenses$12,500Total current liabilities$430,000Total current assets$1,181,500Long-term debt$284,000Gross fixed assets$1,675,000Par value and paid-in-capital$228,000Less: accumulated depreciation$500,000Retained Earnings$1,414,500Net fixed assets$1,175,000Common Equity1,642,500Total assets$2,356,500Total liabilities and owner's equity$2,356,500
Income Statement Year of 2011
Net sales (all credit)$3,136,600.00Less: Cost of goods sold$2,195,620.00Selling and administrative expenses$345,000.00Depreciation expense$146,000.00EBIT$449,980.00Interest expense$45,300.00Earnings before taxes$404,680.00Income taxes$161,872.00Net income$242,808.00