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How is times interest earned ratio and quick ratio's calculated from this data set? December 31 2017 2016 Cash and cash equivalents $3,812,358 $3,837,660 Restricted
How is times interest earned ratio and quick ratio's calculated from this data set?
December 31 2017 2016 Cash and cash equivalents $3,812,358 $3,837,660 Restricted cash 157,656 107,852 Net receivables 515,381 499,142 Inventory 2,263,537 2,067,454 Other current assets 268,365 194,465 Current assets 7,017,297 6,706,573 Current liabilities 7,674,670 5,827,005 Total liabilities 23,022,980 16,750,167 6,076,836 6,538,353 Stockholders' equity Year ended December 31, 2017 Loss before income taxes $(2,209,032) Interest expense 515,703 Cash flows from operating activities (58,321) Capital expenditures (3,859,258) a. Compute the current ratio and quick ratio for each year. Note: Round answers to two decimal places. 2017 2016 Current ratio 0.91 1.15 Quick ratio 0.69 0.62x b. Compute the debt-to-equity ratio for 2017 and 2016 and the times-interest-earned ratio for 2017. Note: Round answers to two decimal places. Use a negative sign with your answer, if appropriate. 2017 2016 Debt-to-equity ratio 3.79 2.56 Times interest earned ratio (0.113)Step by Step Solution
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