Question 1:

Question 2:

At April 30, 2013, H. J. Klehr Incorporated reported the following amounts (in millions) in its financial statements 2013 2012 Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income $12,900 9,159 240 280 1,160 $11,700 8,073 240 300 1,080 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2013 and 2012. (Round your answers to 2 decimal places.) 2013 2012 Debt-to-Assets Times Interest Earned Ratio 2-a. Creditors were providing a greater (or lesser) proportion of financing for Klehr Incorporated assets? Greater Lesser 2-b. Klehr Incorporated was more (or less) successful at covering its interest costs, as compared to 2012? More Less