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The following statement of financial position and statement of comprehensive income should be used.
| Woodburn, Inc. 2018 Statement of comprehensive income ($ in thousands) |
| Net Sales | $6,380 |
| Less: Cost of Goods Sold | 4,120 |
| Less: Depreciation | 360 |
| Earnings Before Interest and Taxes | 1,900 |
| Less: Interest Paid | 45 |
| Taxable Income | 1,855 |
| Less: Taxes | 650 |
| Net Income | 1,205 |
| Woodburn, Inc. Statement of financial position Years ended 2017 and 2018 ($ in thousands) |
| | 2017 | 2018 | | 2017 | 2018 |
| Cash | $230 | $340 | Accounts payable | $850 | 1,020 |
| Accounts rec. | 910 | 950 | Long-term debt | 1,650 | 1,400 |
| Inventory | 1,490 | 1,460 | Common stock | 2,500 | 2,200 |
| Total | 2,630 | $2,750 | Retained earnings | 820 | 1,350 |
| Net fixed assets | 3,190 | 3,220 | | | |
| Total assets | $5,820 | $5,970 | Total liabilities & equity | $5,820 | $5,970 |
What is Woodburn's debt-equity ratio for 2018?
Select one:
A.
.68
B.
.39
C.
.55
D.
.47
E.
.52
Answer & Explanation
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