1 4 points eBook Hint References Mini-Exercise 11-4 (Algo) Calculate financial leverage measures The following information was available for the year ended December 31, 2019 Earnings before interest and taxes (operating income) Interest expense Income tax expense Net income Total assets at year-end Total liabilities at year-end Required: $ 99,000 23,000 28,000 48,000 330,000 172,000 a. Calculate the debt ratio at December 31, 2019. (Round your answer to 1 decimal place.) b. Calculate the debt/equity ratio at December 31, 2019. (Round your answer to 2 decimal places.) c. Calculate the times interest earned for the year ended December 31, 2019, (Round your answer to 2 decimal places.) a Debt ratio %6 b. Debt/Equity ratio times c. Times interest eamed times Exercise 11-7 (Static) Effect of transactions on various financial ratios Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it. Use - for increase, - for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the transaction/event. Transaction/Event a. Split the common stock 2 for 1. b. Collected accounts receivable. c issued common stock for cash d. Sold treasury stock e Accrued interest on a note receivable. Sold inventory on account 9. Wrote off an uncollectible account h. Declared a cash dividend. Lincurred operating expenses Sold equipment at a loss. Financial Ratio Book value per share of common stock Number of days' sales in accounts receivable Total asset turnover Return on equity Current ratio Acid-test ratio Accounts receivable turnover Dividend yield Margin Earnings per share Effect 6 Exercise 11-8 (Static) Effect of transactions on various financial ratios 15. points Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite iz Use for increase, for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the transaction/event. +Book References Transaction/Event a Purchased inventory on account b. Sold inventory for cash, at a profit c Issued a 10% stock dividend d Issued common stock for cash Sold land at a gain Purchased treasury stock for cash g Accrued interest on a note payable h. Accrued wages that have been earned by employees Purchased equipment for cash Issued bonds at an interest rate that is less than the company's RO Financial Ratio Effect Number of days sales in inventory Inventory turnover Earnings per share Debt ratio Return on investment Debt/equity ratio Times interest earned Current ratio Plant and equipment turnover Return on equity