Use the Table for the Question(s) Below -Refer to the Balance Sheet Above

question 15

Multiple Choice

Use the table for the question(s) below.
$\begin{array} { c } \text { Luther Corporation}\\ \text { Consolidated Balance Sheet }\\ \text {June 30, 2011 and 2012 (in \$ millions) }\\\begin{array} { l }\hline \text { Assets } & 2012 & 2011 & \begin{array}{l}\text { Liabilities and } \\\text { Shareholders' Equity }\end{array} &2012&2011\\\hline \text { Current Assets } & & & \text { Current Liabilities } & \\\hline \text { Cash } & 63.6 & 58.5 & \text { Accounts payable } & 87.6&73 .5 \\\hline \text { Accounts receivable } & 55.5 & 39.6 & \begin{array}{l}\text { Notes payable / } \\\text { short-term debt }\end{array} & 10.5&9 .6\\\hline \text { Inventories } & 45.9 & 42.9 & \begin{array}{l}\text { Current maturities of } \\\text { long-term debt }\end{array} & 39.9&36 .9 \\\hline \text { Other current assets } & 6.0 & 3.0 & \text { Other current liabilities } & 6.0&12 .0\\\hline\\\hline \text { Long-Term Assets } & &&{\text { Long-Term Liabilities }} \\\hline \text { Land } & 66.6 & 62.1 & \text { Long-term debt } & 239.7&168 .9 \\\hline \text { Buildings } & 109.5 & 91.5 & \text { Capital lease obligations } & \ldots&\ldots\\\hline \text { Equipment } & 119.1 & 99.6 & \text { Total Debt } & 239.7&168 .9 \\\hline\begin{array} { l } \text { Less accumulated}\\ \text { depreciation }\\\end{array}&(56.1) & (52.5) & \text { Deferred taxes } & 22.8&22 .2 \\\hline \begin{array}{l}\text { Net property, plant, and } \\\text { equipment }\end{array} & 239.1 & 200.7 & \text { Other long-term liabilities } & ---&---\\\hline \text { Goodwill } & 60.0 & -- & \text { Total long-term liabilities } & 262.5&191 .1 \\\hline \text { Other long-term assets } & 63.0 & 42.0 & \text { Total liabilities } & 406.5&323 .1 \\\hline \text { Total long-term assets } & 362.1 & 242.7 & \text { Shareholders' Equity } & 126.6&63 .6 \\\hline\\\hline\text { Total Assets } & 533.1 & 386.7&\begin{array} { l } \text {Total liabilities and }\\ \text { Shareholders' Equity }\\\end{array}&533.1&386 .7 \\\hline\end{array}\end{array}$

-Refer to the balance sheet above. If in 2012 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then using the market value of equity, the debt-equity ratio for Luther in 2011 is closest to:

• A) 2.35
• B) 1.78
• C) 1.71
• D) 2.31

---

Definitions:

Breast-Feeding

The feeding of an infant or young child with milk from a woman’s breast, providing essential nutrients and immune support.

Undernourishment

a condition in which an individual does not intake enough nutrients to meet their daily energy requirements, leading to malnutrition and health issues.

Nighttime Feedings

Feeding sessions that occur during the night, particularly important for infants who require frequent feedings for proper growth and development.

Neonate's Brain

The brain of a newborn infant, which is rapidly developing and highly plastic in the first month of life.