Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The balance sheet for Clove Corporation reported the following: cash, $14,000; short-term investments, $19,000; net accounts receivable, $53,000; inventory, $58,000; prepaids, $19,000; equipment, $115,000; current
The balance sheet for Clove Corporation reported the following: cash, $14,000; short-term investments, $19,000; net accounts receivable, $53,000; inventory, $58,000; prepaids, $19,000; equipment, $115,000; current liabilities, $58,000; notes payable (long-term), $88,000; total stockholders equity, $270,000; net income, $5,120; interest expense, $8,000; income before income taxes, $10,680.
1. | Compute Clove's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) |
Ratio
Debt to Assests: ?
Time Interest Earned: ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started