Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Please Give me answer general accounting

Lincoln Enterprises has the following financial data from its
balance sheet and income statement:
Metric
Total Assets
Total Liabilities
Total Stockholders' Equity
Net Operating Income (Income Before Interest
and Taxes)
Interest Expense
Year 2 Year 1
$980,000 $920,000||
$400,000 $350,000||
$580,000 $570,000||
$55,000
$20,000
What is the company's debt-to-equity ratio at the end of Year 2?
a. 0.69
b. 0.75
c. 0.68
d. 0.62
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Transcribed Image Text:Lincoln Enterprises has the following financial data from its balance sheet and income statement: Metric Total Assets Total Liabilities Total Stockholders' Equity Net Operating Income (Income Before Interest and Taxes) Interest Expense Year 2 Year 1 $980,000 $920,000|| $400,000 $350,000|| $580,000 $570,000|| $55,000 $20,000 What is the company's debt-to-equity ratio at the end of Year 2? a. 0.69 b. 0.75 c. 0.68 d. 0.62
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