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

question 136

Multiple Choice

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's debt-to-equity ratio for Year 2. $\begin{array}{|l|r|r|}\hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Net sales } & \$ 478,500 & \$ 426,250 \\\hline \text { Cost of goods sold } & 276,300 & 250,120 \\\hline \text { Interest expense } & 9,700 & 10,700 \\\hline \text { Net income before tax } & 67,250 & 52,680 \\\hline \text { Net income after tax } & 46,050 & 39,900 \\\hline \text { Total assets } & 317,100 & 288,000 \\\hline \text { Total liabilities } & 181,400 & 167,300 \\\hline \text { Total equity } & 135,700 & 120,700 \\\hline\end{array}$

• A)0.75.
• B)2.63.
• C)2.34.
• D)1.34.
• E)1.75.

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Definitions:

Inclusive

An approach or policy that ensures all people can participate and are not excluded on the basis of race, gender, disability, or other characteristics.

Eukarya

The domain that includes all eukaryotes: protists, fungi, plants, and animals.

Membrane-Enclosed Organelles

Cellular structures in eukaryotic cells that are surrounded by a lipid bilayer membrane, each with specific functions, such as the nucleus and mitochondria.

Nuclei

The plural of nucleus, referring to the membrane-bound organelles found in eukaryotic cells that contain most of the cell's genetic material.