Use the table for the question(s) below. Consider the following balance sheet: Luther Corporation Consolidated Balance Sheet December 31, 2019 and 2018 (in $ millions) Assets 2019 2018 Liabilities and Stockholders' Equity 2019 2018 Current Assets Current Liabilities Cash 63.6 58.5 Accounts payable 87.6 73.5 Accounts receivable 55.5 39.6 Notes payable / short−term debt 10.5 9.6 Inventories 45.9 42.9 Current maturities of long−term debt 39.9 36.9 Other current assets 6.0 3.0 Other current liabilities 6.0 12.0 Total current assets 171.0 144.0 Total current liabilities 144.0 132.0 Long−Term Assets Long−Term Liabilities Land 66.6 62.1 Long−term debt 239.7 168.9 Buildings 109.5 91.5 Capital lease obligations −−− −−− Equipment 119.1 99.6 Total Debt 239.7 168.9 Less accumulated depreciation (56.1) (52.5) Deferred taxes 22.8 22.2 Net property, plant, and equipment 239.1 200.7 Other long−term liabilities −−− −−− Goodwill 60.0 −− Total long−term liabilities 262.5 191.1 Other long−term assets 63.0 42.0 Total liabilities 406.5 323.1 Total long−term assets 362.1 242.7 Stockholders' Equity 126.6 63.6 Total Assets 533.1 386.7 Total liabilities and Stockholders' Equity 533.1 386.7 Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding. Its Debt −Capital Ratio for 2019 is closest to:

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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Use the table for the question(s) below.

Consider the following balance sheet:

Luther Corporation Consolidated Balance Sheet December 31, 2019 and 2018 (in $ millions)
Assets	2019	2018	Liabilities and Stockholders' Equity	2019	2018
Current Assets			Current Liabilities
Cash	63.6	58.5	Accounts payable	87.6	73.5
Accounts receivable	55.5	39.6	Notes payable / short−term debt	10.5	9.6
Inventories	45.9	42.9	Current maturities of long−term debt	39.9	36.9
Other current assets	6.0	3.0	Other current liabilities	6.0	12.0
Total current assets	171.0	144.0	Total current liabilities	144.0	132.0

Long−Term Assets			Long−Term Liabilities
Land	66.6	62.1	Long−term debt	239.7	168.9
Buildings	109.5	91.5	Capital lease obligations	−−−	−−−
Equipment	119.1	99.6	Total Debt	239.7	168.9
Less accumulated depreciation	(56.1)	(52.5)	Deferred taxes	22.8	22.2
Net property, plant, and equipment	239.1	200.7	Other long−term liabilities	−−−	−−−
Goodwill	60.0	−−	Total long−term liabilities	262.5	191.1
Other long−term assets	63.0	42.0	Total liabilities	406.5	323.1
Total long−term assets	362.1	242.7	Stockholders' Equity	126.6	63.6

Total Assets	533.1	386.7	Total liabilities and Stockholders' Equity	533.1	386.7

Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding. Its Debt

−Capital

Ratio for 2019 is closest to:

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