Evensen Plumbing Products Ltd. reported the following data in 2020 (in millions): : (Click the icon to view the financial statements.) Compute Evensen's leverage ratio, debt ratio, and times-interest-earned ratio, and write sentence to explain what those ratio values mean. Would you be willing to lend Evensen $1 million? State your reason. First, compute Evensen's leverage ratio. Determine the formula for the leverage ratio. Then, complete the formula and calculate the leverage ratio. (Enter all amounts in millions. Round your answer to two decimal places, X.XX.) Leverage ratio Interest expense This me Net income Net operating revenues Now, de bt ratio. Then, complete the formula and calculate the debt ratio. (Enter all amounts in millions. Round your answer to two decimal places, X.XX.) Operating expenses Operating income Debt ratio Other Shareholders' equity This me Total assets Total liabilities Determii. ......terest-earned ratio. Then, complete the formula and calculate the debt ratio. (Enter all amounts in millions. Round your answer to two decimal places, X.XX.) Time-interest-earned ratio This means that Evensen Plumbing Products Ltd. reported the following data in 2020 (in millions): :: (Click the icon to view the financial statements.) Compute Evensen's leverage ratio, debt ratio, and times-interest-earned ratio, and write a sentence to explain what those rati Financial statements ur reason. fer to two First, compute Evensen's leverage ratio. Determine the formula for the leverage ratio. Then, complete the formula and calcula decimal places, X.XX.) 2020 Leverage ratio $ 33.0 28.2 Net operating revenues Operating expenses Operating income Non-operating items: This means that Evensen has $ of 4.8 Now, determine the formula for the debt ratio. Then, complete the formula and calculate the debt ratio. (Enter all amounts in Interest expense Debt ratio (1.6) (0.3) Other $ 2.9 Net income This means that Evensen has $ in Total assets. $ 150.0 Determine the formula for the times-ini culate the debt ratio. (Enter all 57.0 Total shareholders' equity assets for every dollar of shareholders' equity. ratio assets for every dollar of liabilities (debt). liabilities (debt) for every dollar of assets. Print Done This means that This means that Would you be willing to lend Evensen $1 million? State your reason. million available to pay on the principal of the long-term debt. Evensen's debt ratio is and the company its existin of operating income. of interest expense. Choose from any list or enter any number in the input fields and then continu This means that $ Would you be wil Evensen's debt interest expense. be willing to lend Evensen $1 million. for every dollar of interest expense, Evensen has earned for every dollar of operating income, Evensen has Evensen has Choose from any to the next
