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  3. information from nue companys financial statements is provided below 2013...

Question: information from nue companys financial statements is provided below 2013...

Question details

Information from Nue Company's financial statements is provided below.

2013

2012

Current liabilities

$250 000

$170 000

Non-current liabilities

130 000

340 000

Shareholders' equity

440 000

560 000

Net cash flows from operating activities

70 000

61 000

Interest and principal payments

14 000

9 000

Net sales

475 000

450 000

Total comprehensive income

90 000

72 000

Interest expense

7 500

13 500

Income tax

18 000

12 500

Dividends paid to ordinary shareholders

16 000

28 000

Which of the following statements is true concerning Nue's debt management activities?

Nue Company improved its debt-to-equity ratio

The company relied more on creditors for financing during 2013 than in 2012

The company has a smaller percentage of capital from shareholders at the end of 2013 than at the end of 2012

Relative to 2012, Nue Company is in a weaker position at the end of 2013 to finance capital expenditures from cash flow generated by operating activities

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