Question
At May 31, 2019, Tagalong Transport Services reported the following amounts (in millions) in its financial statements: 2019 2018 Total Assets $ 64,000 $ 62,000
At May 31, 2019, Tagalong Transport Services reported the following amounts (in millions) in its financial statements: 2019 2018 Total Assets $ 64,000 $ 62,000 Total Liabilities 38,400 34,720 Interest Expense 686 660 Income Tax Expense 140 245 Net Income 690 5,466 Required: 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 Tagalongs assets? 2-b. In 2019, was Tagalong more (or less) successful at covering its interest costs, as compared to 2018?
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