Reference no: EM132525197

American Bacon Inc. financial statements are presented in the table below.

Question 1: Based on the information in the table, calculate the firm's total debt-to-equity ratio. Round the answers to two decimal places in percentage form.

Balance Sheet December 31, 2010

Cash and marketable securities $102,000

Accounts payable $287,000

Accounts receivable $299,000

Notes payable $61,200

Inventories $628,000

Accrued expenses $51,900

Prepaid expenses $10,300

Total current liabilities $400,100

Total current assets $1,039,300

Long-term debt $415,000

Gross fixed assets $1,502,000

Par value and paid-in-capital $376,000

Less: accumulated depreciation $312,000

Retained Earnings $1,038,200

Net fixed assets $1,190,000

Common Equity 1,414,200

Total assets $2,229,300

Total liabilities and owner's equity $2,229,300

Income statement, Year of 2010

Net sales (all credit) $6,387,700.00

Less: Cost of goods sold $4,726,898.00

Selling and administrative expenses $345,000.00

Depreciation expense $148,000.00

EBIT $1,167,802.00

Interest expense $50,600.00

Earnings before taxes $1,117,202.00

Income taxes $446,880.80

Net income $670,321.20