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The following information was available for the year ended December 31, 2016: Earnings before interest and taxes (operating income) $ 66,000 Interest expense 12,000 Income
The following information was available for the year ended December 31, 2016:
Earnings before interest and taxes (operating income) | $ | 66,000 | |
Interest expense | 12,000 | ||
Income tax expense | 17,000 | ||
Net income | 37,000 | ||
Total assets at year-end | 220,000 | ||
Total liabilities at year-end | 128,000 | ||
Required:
a. Calculate the debt ratio at December 31, 2016. (Round your answer to 1 decimal place.)
b. Calculate the debt/equity ratio at December 31, 2016. (Round your answer to 2 decimal places.)
c. Calculate the times interest earned for the year ended December 31, 2016. (Round your answer to 2 decimal places.)
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