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Debt ratio, Ratio of Liabilities to Stockholders' Equity, and Times Interest Earned Camper Company and McSead, Inc., are the two largest toy companies. Condensed liabilities
Debt ratio, Ratio of Liabilities to Stockholders' Equity, and Times Interest Earned Camper Company and McSead, Inc., are the two largest toy companies. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows: The operating income and interest expense from the income statement for both companies were as follows: a. Determine the debt ratio for both companies. Round to one decimal place. b. Determine the ratio of liabilities to stockholders' equity for both companies. Enter your answers as decimal values rounded to one decimal place. Camper McSead c. Determine the times interest earned for both companies. Round to one decimal place. Camper McSead d. What conclusions can be drawn from these data as to the ability of these two companies to meet their interest obligations
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