Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431 1,033,785 Long-term debt 500,000 300,000 Deferred income taxes 236,519 288,644 Total Liabilities $1,885,950 $1,622,429 Common stock $ 425,250 $ 125,000 Additional paid-in capital 356,450 344,335 Retained earnings 980,330 342,666 Total Stockholders' Equity 1,762,030 812,001 Total Liabilities and Stockholders' Equity $3,647,980 $2,434,430 Selected Income Statement Data for the year ending December 31, Year 7: Net sales $4,885,340 Cost of goods sold (2,906,526) Selling expenses (884,685) Operating income 1,094,129 Interest expense (55,240) Earnings before income taxes 1,038,889 Income tax expense (401,225) Net income $ 637,664 Selected Statement of Cash Flow Data for the year ending December 31, Year 7: Cash flows from operations $1,601,692 Capital expenditures $745,862 Wilmington Corporation's total debt to equity ratio in Year 7 was:

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ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.9P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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Selected financial data for Wilmington Corporation is presented below.

WILMINGTON CORPORATION Balance Sheet As of December 31
	Year 7	Year 6
Current Assets
Cash and cash equivalents	$ 634,527	$ 335,597
Marketable securities	166,106	187,064
Accounts receivable (net)	284,226	318,010
Inventories	466,942	430,249
Prepaid expenses	60,906	28,060
Other current assets	83,053	85,029
Total Current Assets	1,695,760	1,384,009

Property, plant and equipment	1,384,217	625,421
Long-term investment	568,003	425,000
Total Assets	$3,647,980	$2,434,430

Current Liabilities
Short-term borrowings	$ 306,376	$ 170,419
Current portion of long-term debt	155,000	168,000
Accounts payable	279,522	314,883
Accrued liabilities	301,024	183,681
Income taxes payable	107,509	196,802
Total Current Liabilities	1,149,431	1,033,785

Long-term debt	500,000	300,000
Deferred income taxes	236,519	288,644
Total Liabilities	$1,885,950	$1,622,429

Common stock	$ 425,250	$ 125,000
Additional paid-in capital	356,450	344,335
Retained earnings	980,330	342,666
Total Stockholders' Equity	1,762,030	812,001
Total Liabilities and Stockholders' Equity	$3,647,980	$2,434,430

Selected Income Statement Data for the year ending December 31, Year 7:
Net sales		$4,885,340
Cost of goods sold		(2,906,526)
Selling expenses		(884,685)
Operating income		1,094,129
Interest expense		(55,240)
Earnings before income taxes		1,038,889
Income tax expense		(401,225)
Net income		$ 637,664

Selected Statement of Cash Flow Data for the year ending December 31, Year 7:
Cash flows from operations		$1,601,692
Capital expenditures		$745,862