Debt ratio and interest coverage ratio (Learning Objective 7) 5–10 min.

Sanchez Industrial Supply had the following balances as of December 31, 2014:

Total Current Assets............................................................................................

Total Long-Term Assets......................................................................................

Total Current Liabilities .......................................................................................

Total Long-Term Liabilities .................................................................................

Total Stockholders’ Equity ..................................................................................

Earnings Before Interest and Taxes ....................................................................

Interest Expense ................................................................................................

Income Tax Expense ..........................................................................................

Net Income ........................................................................................................

$ 80,000 320,000 20,000 200,000 180,000 73,800 18,700 21,900 33,200 Requirements 1. Calculate Sanchez Industrial Supply’s debt ratio as of December 31, 2014.

2. Calculate Sanchez Industrial Supply’s interest coverage ratio for 2014. Round your answer to two decimal places.

AppendixLO1