The following information was available for the year ended December 31, 2019: Earnings before interest and taxes
Fantastic news! We've Found the answer you've been seeking!
Question:
The following information was available for the year ended December 31, 2019:
Earnings before interest and taxes (operating income)$97,500
Interest expense15,000
Income tax expense22,500
Net income60,000
Total assets at year-end288,000
Total liabilities at year-end216,000
Required:
(a.) Calculate the debt ratio at December 31, 2019.
(b.) Calculate the debt/equity ratio at December 31, 2019.
(c.) Calculate the times interest earned for the year ended December 31, 2019.
Expert Answer:
Posted Date:
