Refer to the Following Selected Financial Information from Shakley's Incorporated

question 9

Multiple Choice

Refer to the following selected financial information from Shakley's Incorporated.Compute the company's debt-to-equity ratio for Year 2. $$\begin{array} { l r r } & \text { Year 2 } & \text { Year } 1 \\\text { Net sales } & \$ 478,500 & \$ 426,250 \\\text { Cost of goods sold } & 276,300 & 250,120 \\\text { Irterest experse } & 9,700 & 10,700 \\\text { Net incomebefore tax }& 67,250 & 52,680 \\\text { Net income after tax } & 46,050 & 39,900 \\\text { Total assets } & 317,100 & 288,000 \\\text { Total liabilities }& 181,40 0 & 167,300 \\\text { Total equity } & 135,70 0 & 120,700\end{array}$$

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Definitions:

Normally Distributed

Refers to data that fall in a bell curve pattern centered around the mean, used to describe a distribution in statistics.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean of the set.

Mean

The arithmetic average of a set of numbers, representing the central location within that dataset.

Standard Normal

Refers to a normal distribution with a mean of zero and a standard deviation of one, serving as a basis for comparing other normal distributions.