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E14.9 (LO 3) (Evaluate solvency.) The following selected ratios are available for Ackabe Inc. for the three most recent years: Instructions 2024 Debt to total
E14.9 (LO 3) (Evaluate solvency.) The following selected ratios are available for Ackabe Inc. for the three most recent years: Instructions 2024 Debt to total assets 50.0% Times interest earned 1.8 times 2023 45.5% 1.4 times 2022 40.3% 1.4 times a. Has the debt to total assets improved or deteriorated over these three years? b. Has the times interest earned improved or deteriorated over these three years? What do you think is a possible explanation for this? c. Overall, has the company's solvency improved or deteriorated over these three years? Explain. 4
E14.9 (LO 3) (Evaluate solvency.) The following selected ratios are available for Ackabe Inc. for the three most recent years: Debt to total assets 2024 50.0% 2023 2022 45.5% 40.3% Times interest earned 1.8 times 1.4 times 1.4 times Instructions a. Has the debt to total assets improved or deteriorated over these three years? b. Has the times interest earned improved or deteriorated over these three years? What do you think is a possible explanation for this? c. Overall, has the company's solvency improved or deteriorated over these three years? Explain.
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
