Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information was available for the year ended December 31, 2019: Earnings before interest and taxes (operating income) $ 87,000 Interest expense 19,000 Income
The following information was available for the year ended December 31, 2019:
Earnings before interest and taxes (operating income) $ 87,000 Interest expense 19,000 Income tax expense 24,000 Net income 44,000 Total assets at year-end 290,000 Total liabilities at year-end 156,000
Required:
- Calculate the debt ratio at December 31, 2019. (Round your answer to 1 decimal place.)
- Calculate the debt/equity ratio at December 31, 2019. (Round your answer to 2 decimal places.)
- Calculate the times interest earned for the year ended December 31, 2019. (Round your answer to 2 decimal places.)
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