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E10-10 Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5] At April 30, 2013, H. J. Klehr Incorporated reported the following
E10-10 Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5] At April 30, 2013, H. J. Klehr Incorporated reported the following amounts (in millions) in its financial 2013 2012 $14,000 10,080 230 325 1,170 $11,940 8,358 230 290 1,090 Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 1. Compute the debt-to-assets ratio and times interest earned ratio for 2013 and 2012. (Round your answers to 2 decimal places.) 2013 2012 Debt-to-Assets Times Interest Earned Ratio 2-a. Creditors were providing a greater (or lesser) proportion of financing for Klehr Incorporated assets? Greater Lesser 2-b. Klehr Incorporated was more (or less) successful at covering its interest costs, as compared to More Less
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