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Recent Financial Statement Data for Harmony Health Foods (HHF)Inc A)075
B)1

Question 95

Multiple Choice

Recent financial statement data for Harmony Health Foods (HHF) Inc.is shown below.HHF's debt to equity ratio is (rounded to two decimal places) :  Current liabilities $180 Income before interest and taxes $12510% Bonds, long-term 360 Interest expense 36 Total liabilities 540 Income betore tax 89 Stockholders’ equity  Income tax 27 Common stock 200 Net income $62 Retained earnings 280 Total stockholders’ equity 480 Total liabilities and equity $1,020\begin{array} { | l | r | l | r | } \hline \text { Current liabilities } & \$ 180 & \text { Income before interest and taxes } & \$ 125 \\\hline 10 \% \text { Bonds, long-term } & \underline{360} & \text { Interest expense } & \underline{36} \\\hline \text { Total liabilities } & \underline{540} & \text { Income betore tax } & 89 \\\hline \text { Stockholders' equity } & & \text { Income tax } & 27 \\\hline \text { Common stock } & 200 & \text { Net income } & \underline{\$ 62} \\\hline \text { Retained earnings } & 280 & & \\\hline \text { Total stockholders' equity } & \underline{480} & & \\\hline \text { Total liabilities and equity } & \$ 1,020 & & \\\hline\end{array}


A) 0.75.
B) 1.13.
C) 0.38.

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