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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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
Transcribed Image Text:23)
Assets
Current Assets
Cash
Accounts receivable
Inventories
Other current assets
Total current assets
Long-Term Assets
Land
Buildings
Equipment
Less accumulated
depreciation
Net property, plant, and
equipment
Goodwill
Other long-term assets
Total long-term assets
A).75
B).72
C).65
D).70
Luther Corporation
Consolidated Balance Sheet
December 31, 2006 and 2005 (in $ millions)
Liabilities and
2005 Stockholders' Equity
2006
57.6
55.2
45.6
5.6
164.0
66.4
108.3
114.3
Current Liabilities
58.5 Accounts payable
234.6
60.0
63.0
357.6
Notes payable/ short-term
39.6 debt
Current maturities of long-
42.9 term debt
3.0 Other current liabilities
144.0
Total current liabilities
Long-Term Liabilities
Long-term debt
62.1
91.5 Capital lease obligations
99.6
(54.4) (52.5) Deferred taxes
200.7 Other long-term liabilities
Total long-term liabilities
42.0 Total liabilities
242.7 Stockholders' Equity
2006
86.0
10.5
39.6
6.0
142.1
231.3
22.8
-
254.1
396.2
125.4
2005
73.5
9.6
36.9
12.0
132.0
168.9
22.2
www
191.1
323.1
63.6
Total liabilities and
Total Assets
521.6 386.7 Stockholders' Equity
521.6
386.7
Refer to the balance sheet above. If in 2005 Luther has 12.8 million shares outstanding and these shares are
trading at $22.43 per share, then using the market value of equity, the debt-equity ratio for Luther in 2005 is
closest to
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