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The following selected information (in thousands) is available for Wildhorse Inc.: 2021 2020 Total assets $3,883 $3,744 Total liabilities 2,178 1,965 Interest expense 31 15
The following selected information (in thousands) is available for Wildhorse Inc.:
2021 | 2020 | |||
Total assets | $3,883 | $3,744 | ||
Total liabilities | 2,178 | 1,965 | ||
Interest expense | 31 | 15 | ||
Income tax expense | 175 | 146 | ||
Profit | 401 | 390 | ||
Cash provided by operating activities | 929 | 588 | ||
Cash used by investing activities | 481 | 307 |
Calculate the following solvency ratios of Wildhorse Inc. for 2021 and 2020. (Round debt to total assets and interest coverage answers to 1 decimal place, e.g. 52.7 or 52.7%.)
2021 | 2020 | |||||
Debt to total assets | % | % | ||||
Free cash flow | $ | $ | ||||
Interest coverage | times | times |
Indicate whether each of the solvency ratios calculated in part (a) is better or worse in 2021.
Debt to total assets | Better /Worse | |
Free cash flow | Better /Worse | |
Interest coverage | Worse /Better |
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