Question
Transatlantic Venture Corporation reported the following information as of December 31 Cash $22,200 Accounts receivable, net 169,100 Inventory 68,300 Property, Plant and Equipment 132,800 Total
Transatlantic Venture Corporation reported the following information as of December 31
Cash $22,200
Accounts receivable, net 169,100
Inventory 68,300
Property, Plant and Equipment 132,800
Total assets $392,400
Accounts payable $49,200
Current portion of long-term debt 68,800
Long-term notes payable 100,000
Total liabilities 218,000
Common stock 100,000
Retained earnings 74,400
Total equity 174,400
Total liabilities and equity $392,400
Revenue $2,765,000
Operating expenses 2,472,600
Operating income 292,400
Interest expense 17,000
Income before income taxes 275,400
Income tax expense 103,800
Net Income $171,600
Required:
a) Work out the current ratio
b) Compute working capital
c) Work out the times interest earned ratio
d) Work out the debt to assets ratio
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