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Mount Sano Inc. is a retailer of snow skiing gear. During Year 2 , Mount Sano expanded its retail business by adding over 4 8
Mount Sano Inc. is a retailer of snow skiing gear. During Year Mount Sano expanded its retail business by adding over shops. The following information is obtained from the comparative financial statements included in the company's current annual report:
FOR THE FISCAL YEARS ENDED Dec. Year Dec. Year
Total liabilities $ $
Total stockholders' equity
Line Item Description Dec. Year Dec. Year
Depreciation expense $ $
Interest expense
Income tax expense
Net income
Net cash from operating activities
Total dividends paid
Cash used to purchase plant assets
Payments on longterm debt
Required: Using the information provided above, compute the following for both years.
A Compute the debttoequity ratio at each yearend for both years. Round answers to one decimal place.
Year fill in the blank of
Year fill in the blank of
B Compute the timesinterestearned ratio for both years. Round answers to two decimal places.
Year fill in the blank of
times
Year fill in the blank of
times
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