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Given the following Year 12 Financial Statement data for a footwear company:

Given the following Year 12 Financial Statement data for a footwear company:
Income Statement Data

Year 12 (in 000s)
Net Revenues from Footwear Sales

$ 300,000
Operating Profit (Loss)

70,000
Net Profit (Loss)

$ 42,000





Balance Sheet Data



Cash on Hand

10,000
Total Current Assets

$ 70,000
Total Assets

300,000
Overdraft Loan Payable

5,000
1-Year Bank Loan Payable

10,000
Current Portion of Long-term Loans

17,000
Total Current Liabilities

48,000
Long-Term Bank Loans Outstanding

72,000
Shareholder Equity: Year 11 Balance Year 12 Change

Common Stock 10,000 0 10,000
Additional Capital 108,000 0 108,000
Retained Earnings 30,000 32,000 62,000
Total Shareholder Equity 148,000 +32,000 180,000





Other Financial Data



Depreciation

$11,500
Dividend payments

$10,000






Based on the above figures and the formula for calculating the default-risk ratio found on the Help screen for p. 5 of the Footwear Industry Report and p. 28 of the Player’s Guide, the company’s default-risk ratio in Year 12 was

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