PLEASE ANSWER EACH QUESTION CORRECTLY (GRADED), THANK YOU.

1. Paddys Pub reported the following year-end data:

Income before interest expense and income tax expense	$ 30,000
Cost of goods sold	17,000
Interest expense	1,500
Total assets	70,000
Total liabilities	20,000
Total equity	50,000

Compute the (a) debt-to-equity ratio and (b) times interest earned.

Debt To Equity Ratio

Compute the debt-to-equity ratio.

Debt-To-Equity Ratio
Numerator:	/	Denominator:	=	Debt-To-Equity Ratio
	/		=	Debt-to-equity ratio
	/		=	0

Compute the times interest earned.

Times Interest Earned
Numerator:	/	Denominator:	=	Times Interest Earned
	/		=	Times interest earned
	/		=	0	times