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Question 21 ABC Co. financial data for 2020 & 2019 are given below: Total Assets Total Liabilities Cash Interest-bearing Debt Net Income Interest Expense Tax
Question 21 ABC Co. financial data for 2020 & 2019 are given below: Total Assets Total Liabilities Cash Interest-bearing Debt Net Income Interest Expense Tax Expense Depreciation Expense 2020 2019 $921,000 $879,000 647,000 551,000 50,000 39,000 561,000 389,000 139,000 119,000 9,700 7,200 17,400 15,600 53,000 38,500 Calculate the debt to equity ratio and the interest coverage ratio using the select financial data provided above for 2019 & 2020. (Round answers to 2 decimal places, e.g. 15.25.) 2020 2019 Debt to Equity Ratio Interest Coverage Ratio times times Is ABC Corp.'s leverage improving or deteriorating? ABC Corp.'s leverage is Is its ability to service its long-term debt improving or deteriorating? Ability to service its long-term debt is
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