Consider the following financial statement data for Hi$-$Tech Instruments:

For the Year Ended December $31$

$($Thousands of Dollars, except Earnings per Share$)$

Sales revenue $$219,000$

Cost of goods sold $134,000$

Net income $17,300$

Dividends $11,600$

Earnings per share $$4\mathrm{.}15$

HI$-$TECH INSTRUMENTS, INC.

Balance Sheets

$($Thousands of Dollars$)$ Current Year Prior Year

Assets

Cash $$27,300$ $$27,000$

Accounts receivable $($net$)55,00050,000$

Inventory $48,50052,700$

Total Current Assets $130,800129,700$

Plant assets $($net$)61,60059,500$

Other assets $24,60022,800$

Total Assets $$217,000$ $$212,000$

Liabilities and Stockholders$$ Equity

Notes payable$$banks $$15,000$ $$15,000$

Accounts payable $31,50027,700$

Accrued liabilities $25,50030,000$

Total Current Liabilities $72,00072,700$

$9\%$ Bonds payable $49,00049,000$

Total Liabilities $121,000121,700$

Common stock $50,00050,000$

Retained earnings $46,00040,300$

Total Stockholders$$ Equity $96,00090,300$

Total Liabilities and Stockholders$$ Equity $$217,000$ $$212,000$

$*$ $$25\mathrm{.}00$ par value; $2,000,000$ shares

Industry Average Ratios for Competitors

Quick ratio $1\mathrm{.}3$

Current ratio $2\mathrm{.}4$

Accounts receivable turnover $5\mathrm{.}9$ times

Inventory turnover $3\mathrm{.}5$ times

Debt$$to$$equity ratio $0\mathrm{.}73$

Gross profit percentage $42\mathrm{.}8$ percent

Profit margin $4\mathrm{.}5$ percent

Return on assets $7\mathrm{.}6$ percent

Calculate the company's debt$-$to$-$equity ratio for the current year.

Note: Round answers to two decimal places, when appropriate.

Answer

$0$

Compare the result to the industry average.

The company's debt$-$to$-$equity ratio is Answer

than the industry's average.