Requirement

For the year ended June 30, 2007, compute:

1. Interest Coverage Ratio (Time interest earning ratio)
2. Debt ratio (Total debt to total asset ratio)
3. Debt to Equity ratio d. Long term debt to Asset ratio e. Total debt to Capitalization ratio

A.E.G. ENTERPRISES Balance Sheet for June 30, 2007 (in thousands) $ 50,000 60,000 106,000 $216,000 $504,000 140,000 364,000 20,000 $600,000 $ 46,000 15,000 32,000 $ 93,000 100,000 50,000 Assets Current assets: Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less: Accumulated depreciation Patents and other intangible assets Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Taxes payable Other current liabilities Total current liabilities Long-term debt Stockholders' cquity: Preferred stock ($100 par, 10% cumulative, 500,000 shares authorized and issued) Common stock ($1 par, 200,000,000 shares authorized, 100,000,000 issued) Premium on common stock Retained carnings Total liabilities and stockholders' equity A.E.G. ENTERPRISES Income Statement For the Year Ended June 30, 2007 (in thousands except earnings per share) Sales Cost of sales Gross profit Operating expenses Selling General Operating income Other items: Interest expense Earnings before provision for income tax Provision for income tax Net income Earnings per share 100,000 120,000 137,000 $600,000 $936,000 671,000 $265,000 $62,000 41,000 103,000 $162,000 20,000 $142,000 56,800 $ 85,200 $ 0.83