Question
Refer to the information for Juroe Company below. Juroe Company provided the following income statement for last year: Sales...............................................$11,300,000 Cost of goods sold.................................3,000,000 Gross margin......................................$
Refer to the information for Juroe Company below. Juroe Company provided the following income statement for last year: Sales...............................................$11,300,000 Cost of goods sold.................................3,000,000 Gross margin......................................$ 8,300,000 Operating expenses.................................3,800,000 Operating income.................................$ 4,500,000 Interest expense....................................1,000,000 Income before taxes.............................$ 3,500,000 Income taxes.......................................1,400,000 Net income.......................................$ 2,100,000 Juroe's balance sheet as of December 31 last year showed total liabilities of $10,250,000,total equity of $6,150,000, and total assets of $16,400,000. Required: 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
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