Required information [The following information applies to the questions displayed below] On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: During January 2024, the following transactions occur: January 1 Horrow $112,000 fron Coptive credit corporation. The installment note bearn interent at 68 annual1y and maturee in 5 yearn. Payments of $2,165 are required at the end of each nontb for 60 monthe. January 4 Receive $32,200 from customern on accounts receivable. January 10 Pay cash on accounta payable, $23,000. January 15 Pay canh for nolaries, $30,100. January 30 Firevork anles tor the month total $201,000. The cont of the unitin sold is $118,500. January 31 vay the firat monthly inota11ment of $2,165 related to the $112,000 borroved on January 1 . 7. Analyze the following for Freedom Fireworks: 7. Analyze the following for Freedom Fireworks: 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? Complete this question by entering your answers in the tabs below. Calculate the debt to equity ratio. 7. Analyze the following for Freedom Fireworks: 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 receive a higher or lower interest rate than the average borrowing rate in the industry? Complete this question by entering your answers in the tabs below. 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? If the average debi to equity ratio for the industry is 1 , is Freodom Firoworks move or fess loworaped than other companies in the same industry? 7. Analyze the following for Freedom Fireworks: 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? Complete this question by entering your answers in the tabs below. Calculate the times interest earned ratio. 7. Analyze the following for Freedom Fireworks: 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? Complete this question by entering your answers in the tabs below. 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? If the average times interest earned tato for the industy is 20 times, is the company more on less able to meet interest payments than other comparsos in the same industry? 7. Analyze the following for Freedom Fireworks: 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 receive a higher or lower interest rate than the average borrowing rate in the industry? Complete this question by entering your answers in the tabs below. Based on the ratios calculated in (a) and (b), would Freedom Fireworks be more likely to receive a higher or lower interest rate than the average borrowing rate in the industry? Based on the ratios calculated in (a) and (b). would Freddom Fireworks be more bikely to teceive at highne or tawer interest rate than the average botrowing rate in the induniry
