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Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in S millions) Liabilities and 2006 2005 Stockholders' Equity 2006 2005 Assets Current Assets Cash Current Liabilibes 73.5 59 58.5 Accounts payable Notes payable / 39.6 short-tem debt Current maturities of 42.9 long-term debt 3.0 Other current labilities 87.8 Accounts recelvable 559 9.7 9.6 Inventories 46 8 40.8 36.9 Other current assets 6.1 6.0 12.0 Total current assets 167.8 144.0 Total curent liabilities 1443 132.0 Long - Tem Assets Land Long-Term Liabilibes 655 62.1 Long-term debt 231.4 1689 91.5 Capital lease obligations Buildings Equipment Less accumulated depreciation Net property, plant, and equipment Goodwill 109.6 1162 996 (57.7) (525) Deferred taxes 22.8 222 2336 200.7 Other long-term labilities 60.0 63.0 Total long-term kabilities 2542 1911 -- 42.0 Total liabilities Other long - term assets Total long - term assets 398.5 323 1 3566 2427 Stockholders' Equity 125.9 636 Total liabilities and 524.4 386.7 Stockholders' Equity Total Assets 524 4 386.7 Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to OA 448 OB. 224 OC 1.12 OD. 313

Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in S millions) Liabilities and 2006 2005 Stockholders' Equity 2006 2005 Assets Current Assets Cash Current Liabilibes 73.5 59 58.5 Accounts payable Notes payable / 39.6 short-tem debt Current maturities of 42.9 long-term debt 3.0 Other current labilities 87.8 Accounts recelvable 559 9.7 9.6 Inventories 46 8 40.8 36.9 Other current assets 6.1 6.0 12.0 Total current assets 167.8 144.0 Total curent liabilities 1443 132.0 Long - Tem Assets Land Long-Term Liabilibes 655 62.1 Long-term debt 231.4 1689 91.5 Capital lease obligations Buildings Equipment Less accumulated depreciation Net property, plant, and equipment Goodwill 109.6 1162 996 (57.7) (525) Deferred taxes 22.8 222 2336 200.7 Other long-term labilities 60.0 63.0 Total long-term kabilities 2542 1911 -- 42.0 Total liabilities Other long - term assets Total long - term assets 398.5 323 1 3566 2427 Stockholders' Equity 125.9 636 Total liabilities and 524.4 386.7 Stockholders' Equity Total Assets 524 4 386.7 Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to OA 448 OB. 224 OC 1.12 OD. 313

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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5. Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to:
Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in S millions) Liabilities and 2005 Stockholders' Equity Current Liabilites Assets 2006 2006 2005 Current Assets 87.8 73.5 58.5 Accounts payable Notes payable / 39.6 short-term debt Current maturities of 42.9 long-tem debt 3.0 Other current liabilities Cash 59 Accounts receivable 55.9 9.7 9.6 Inventories 46.8 40.8 36.9 Other current assets 6.1 6.0 12.0 Total current assets 167.8 144.0 Total current liabilities 144.3 132.0 Long-Term Liabilities 62.1 Long-term debt 109.6 91.5 Capital lease obligations Long - Term Assets Land 65.5 231.4 168.9 Buildings Equipment Less accumulated depreciation Net property, plant, and еquipment Goodwill 116.2 99.6 (57.7) (52.5) Deferred taxes 22.8 222 233.6 200.7 Other long-term liabilities 60.0 63.0 Total long-term liabilities 254.2 191.1 -- Other long - term assets Total long - term assets 42.0 Total liabilities 356.6 242.7 Stockholders' Equity 398,5 323.1 125.9 63.6 Total liabilities and 524.4 386.7 Stockholders' Equity Total Assets 524. 4 386.7 Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to: O A. 4.48 O B. 224 OC. 1.12 OD. 3.13
Transcribed Image Text:Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in S millions) Liabilities and 2005 Stockholders' Equity Current Liabilites Assets 2006 2006 2005 Current Assets 87.8 73.5 58.5 Accounts payable Notes payable / 39.6 short-term debt Current maturities of 42.9 long-tem debt 3.0 Other current liabilities Cash 59 Accounts receivable 55.9 9.7 9.6 Inventories 46.8 40.8 36.9 Other current assets 6.1 6.0 12.0 Total current assets 167.8 144.0 Total current liabilities 144.3 132.0 Long-Term Liabilities 62.1 Long-term debt 109.6 91.5 Capital lease obligations Long - Term Assets Land 65.5 231.4 168.9 Buildings Equipment Less accumulated depreciation Net property, plant, and еquipment Goodwill 116.2 99.6 (57.7) (52.5) Deferred taxes 22.8 222 233.6 200.7 Other long-term liabilities 60.0 63.0 Total long-term liabilities 254.2 191.1 -- Other long - term assets Total long - term assets 42.0 Total liabilities 356.6 242.7 Stockholders' Equity 398,5 323.1 125.9 63.6 Total liabilities and 524.4 386.7 Stockholders' Equity Total Assets 524. 4 386.7 Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to: O A. 4.48 O B. 224 OC. 1.12 OD. 3.13
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