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Question 231 pts

Soni Manufacturing reports the following capital structure:

Current liabilities	P100,000
Long-term debt	400,000
Deferred income taxes	10,000
Preferred stock	80,000
Common stock	100,000
Premium on common stock	180,000
Retained earnings	170,000

What is the debt ratio?

Group of answer choices

0.49

0.93

0.48

0.96

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Question 241 pts

Medi Company had the following financial statistics for 2020:

Long-term debt (average rate of interest rate is 8%)	P400,000
Interest expense	35,000
Net income	48,000
Income tax	46,000
Operating income	107,000

What is the times interest earned for 2020?

Group of answer choices

3.3 times

11.4 times

3.1 times

3.7 times

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Question 251 pts

Calculador Company reported the following on its income statement:

Income before taxes	P400,000
Income tax expense	100,000
Net income	P300,000

An analysis of the income statement revealed that interest expense was P100,000.

Calculador Companys times interest earned (TIE) was

Group of answer choices

5 times

3.5 times

4 times

3 times