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req A1: Req B1: please fill out req A1 and req B1 given the information in the first two pictures. thank you On January 1,
req A1: Req B1: please fill out req A1 and req B1 given the information in the first two pictures. thank you On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: During January 2024 , the following transactions occur: January 1 Borrow $114, ee from Captive Credit Corporation. The installment note bears interest at 5% annually and matures in 5 years. Payments of $2,151 are required at the end of each month for 60 months. January 4 Receive $32,40e from customers on accounts receivable. January 10 Pay cash on accounts payable, $25,080. January 15 Pay cash for salaries, $30,300. January 30 Firework sales for the month total $201,400. The cost of the units sold is $119,500. January 31 Pay the first monthly instal1ment of $2,151 related to the $114,600 borrowed on January 1. Requirement 1: a-1. Calculate the debt to equity ratio. a-2. If the average debt to equity ratio for the industry is 1 , is Freedom. Fireworks more or less leveraged than other companies in the same industry? Requirement 2: b-1. Calculate the times interest earned ratio. b-2. If the average times interest earned ratio for the industry is 20 times, is the company more or less able to meet interest payments than other companies in the same industry? Requirement 3: c. Based on the ratios calculated in (a1.) and (b1.). would Freedom Fireworks be more likely to recelve a higher or lower interest rate than the average borrowing rate in the industry? Required information Complete this question by entering your answers in the tabs below. Calculate the debt to equity ratio. Complete this question by entering your answers in the tabs below. Calculate the times interest earned ratio
req A1:
Req B1:
please fill out req A1 and req B1 given the information in the first two pictures. thank you
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