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5 E10-10 (Algo) Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5] At May 31, 2019, Tagalong Transport Services reported
5 E10-10 (Algo) Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5] At May 31, 2019, Tagalong Transport Services reported the following amounts (in millions) in its financial statements: 10 points eBook Print Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income Required: 2019 $ 64,000 2018 $ 62,000 38,400 686 34,720 660 140 245 690 5,466 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for Tagalong's assets? 2-b. In 2019, was Tagalong more (or less) successful at covering its interest costs, as compared to 2018? Complete this question by entering your answers in the tabs below. Req 1 Req ZA Req 28 Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. (Round your answers to 2 decimal places.) Debt-to-Assets Times Interest Earned Ratio 2019 2018
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