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1. On December 31, 2015, a company had assets of $29 billion and stockholders' equity of $22 billion. That same company had assets of $55

1. On December 31, 2015, a company had assets of $29 billion and stockholders' equity of $22 billion. That same company had assets of $55 billion and stockholders' equity of $17 billion as of December 31, 2016. During 2016, the company reported total sales revenue of $22 billion and total expenses of $20 billion. What is the company's debt-to-assets ratio on December 31, 2016?

a) 0.69

b) 0.31

c) 0.036

d) 0.038

2. A company has current assets of $5.00 million and net income of $10.0 million. Current liabilities total $2.5 million, interest expense is $2.0 million, and income tax expense is $3.0 million. What is the times interest earned ratio for this company? (Round your final answer to 2 decimal places.)

a) 0.50.

b) 2.00.

c) 7.50.

d) 0.30.

3. A company issued 10-year, 7.50% bonds with a face value of $100,000. The company received $97,827 for the bonds. Using the straight-line method of amortization, the amount of interest expense for the first interest period is:

a) $7,500.00

b) $2,173.00

c) $7,717.30

d) $7,282.70

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