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Roland Company has the following values taken from its 2021 annual report: Interest expense $20,000 Sales 640,000 Earnings before interest and taxes 400,000 Total liabilities

Roland Company has the following values taken from its 2021 annual report: Interest expense $20,000 Sales 640,000 Earnings before interest and taxes 400,000 Total liabilities 750,000 Stockholders equity 500,000 A. Calculate Roland Companys times interest earned and debt-to-equity ratios. B. How are these ratios used in credit ratings?

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