1.

The following data pertains to Tarzan Corp.'s operations for the year ended December 31, 1996:

Operating income	P1,600,000
Interest expense	200,000
Income before income tax	1,400,000
Income tax expense	490,000
Net income	910,000

The time's interest earned ratio is

2.

Shallow Load, Inc. has sales of Php3,450,000, total assets of Php1,240,000, and total liabilities of Php275,000, which consist strictly of notes payable. The firms operating profit margin is 16.1%, and it pays a 10% rate of interest on its notes payable. How much is the firms times-interest-earned?

Group of answer choices

3.

Marie Co. has the following income statement items.

Sales Php200,000 Cost of sales 80,000 Selling expenses 24,000 Depreciation 26,000 Interest expense 12,000 Income taxes 28,000 Net income Php 30,000 Marie has total assets of Php350,000 and a debt ratio of 30%. All equity is common equity. Times interest earned is

4. RCPS Co. has total debt of Php252,000 and stockholders' equity of Php420,000. RCPS is seeking capital to fund an expansion. RCPS is planning to issue an additional Php180,000 in common stock, and is negotiating with a bank to borrow additional funds. The bank requires a maximum debt ratio of .75. What is the maximum additional amount RCPS will be able to borrow after the common stock is issued?

5.

Data from an XYZ's balance sheet (in millions) is given in the table below.

	Year 1	Year 2
Total assets	70	140
Long-term debt	30	60
Current liabilities	10	10

Based on an assessment of the enterprise's capital structure, the risk of bankruptcy is