Answered step by step
Verified Expert Solution
Question
1 Approved Answer
12. John Smith Enterprises presented the following total debt ratios: Total debt ratio for 2019 = = = 0.62 Total debt ratio for 2018 =
12. John Smith Enterprises presented the following total debt ratios: Total debt ratio for 2019 = = = 0.62 Total debt ratio for 2018 = = = 0.73 Based on this information, answer the following questions, a. What was the cause of the change in the total debt ratio from 2018 to 2019? (7 points) b. What can you say about the solvency of the company? (7 points) 13. A company has a return on assets (ROA) ratio of 0.29. If you were the financial manager, a. would you prefer a higher or lower ratio? (5 points) b. why? (5 points)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started