The following selected information (in thousands) is available for Osborne Inc.:

Instructions

a. Calculate the following solvency ratios of Osborne Inc. for 2021 and 2020.

1. Debt to total assets

2. Free cash fl ow

3. Interest coverage

b. Indicate whether each of the solvency ratios calculated in part (a) is better or worse in 2021.

Transcribed Image Text:

2021 2020 Total assets $3,886 $3,708 Total liabilities 2,177 1,959 Interest expense 27 17 Income tax expense Profit 174 152 406 375 Cash provided by operating activities Cash used by investing activities 925 580 475 300