FIN 101 Financial Choices in Life Spring 2019 22. The information in this question pertains to questions 22, 23, 24, and 25. You are thinking of investing in a company with the following balance sheet and income statement data: Short-term assets: $1,500,000 Short-term liabilities: $500,000 Total debt: $750,000 Total assets: $2,500,000 EBIT: $300,000 Interest payments: $100,000 The industry standard for Current ratio is 2 Debt ratio is 1.2 Times interest earned ratio is 2 Calculate the current ratio to assess the company's liquidity (the company's ability to cover its expenses) A. 0.33 B. 3.0 C. 3.33 D. 0.6 23. Calculate the debt ratio to assess the company's financial leverage (the extent of the company's reliance on debt to support operations). (This question is a part of question 22)? A. 0.4 B. 3.0 . 0.3 D. 3.33 24. Calculate the times interest earned ratio" to assess the company's ability to cover debt payments compared to its peers. (This question is a part of question 22) A 0.33 B. 2.0 . 3.0 D. 3.5