What is the LI’s total debt ratio for 2006? What was the LI’s return on equity f

Question

What is the LI’s total debt ratio for 2006?

What was the LI’s return on equity for 2006?

Use the following Lowell Inc. information for questions below.. Lowell Inc. 2005 2006 Sales         3,500         4,200 Cost of Goods Sold         1,850         2,190 Interest            310            320 Selling, General and Administrative Expense            200            210 Dividends            144            196 Depreciation            320            360 Cash            445            206 Receivables            290            350 Current liabilities         1,100         1,250 Inventory         1,166         1,090 Long-term debt         5,693         4,200 Net fixed assets         8,000         7,500 Tax rate       30%        30%

Explanation / Answer

Debt ratio = total debt/total assets

= 4200/7500

= 0.56 times

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