FAR 11 problem 6

Problem #6 Solvency Ratios The president of Rodriguez, Inc., has asked you to gather some statistics about his corporation's solvency. You have compiled the following data: Profit Income Tax Rate Interest Expense Total Liabilities Total Equity P900,000 35% 100,000 2,048,000 4,352,000 Using these data, calculate: 1. Times interest earned ratio 2. Debt ratio 3. Equity ratio