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Use the following information for items 12 and 13 : A company's net income after tax was $400,000 for its most recent year. The company's

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Use the following information for items 12 and 13 : A company's net income after tax was $400,000 for its most recent year. The company's income statement included Income Tax Expense of $140,000 and Interest Expense of $60,000. At the beginning of the year the company's stockholders' equity was $1,900,000 and at the end of the year it was $2,100,000. 12. What is the times interest earned for the company? a. 6.7 b. 9.0 c. 10.0 13. What is the after-tax return on stockholder's equity for the year? a. 20% b. 25% c. 30% 14. The debt to equity ratio is computed as: (Total Liabilities Total 15. Which of the following will likely have the reported amounts on the balance sheet closest to their current value? a. Current Asset b. Long-term Assets c. Stockholders' Equity 16. A corporation's excellent reputation will be listed among the corporation's assets on its balance sheet. True False 17. The current market value of a corporation is approximately the amount reported on the balance sheet as stockholders' equity. True False 18. Free cash flow is the cash provided by operating activities minus the cash used by financing activities. True False Use the following information for items 12 and 13 : A company's net income after tax was $400,000 for its most recent year. The company's income statement included Income Tax Expense of $140,000 and Interest Expense of $60,000. At the beginning of the year the company's stockholders' equity was $1,900,000 and at the end of the year it was $2,100,000. 12. What is the times interest earned for the company? a. 6.7 b. 9.0 c. 10.0 13. What is the after-tax return on stockholder's equity for the year? a. 20% b. 25% c. 30% 14. The debt to equity ratio is computed as: (Total Liabilities Total 15. Which of the following will likely have the reported amounts on the balance sheet closest to their current value? a. Current Asset b. Long-term Assets c. Stockholders' Equity 16. A corporation's excellent reputation will be listed among the corporation's assets on its balance sheet. True False 17. The current market value of a corporation is approximately the amount reported on the balance sheet as stockholders' equity. True False 18. Free cash flow is the cash provided by operating activities minus the cash used by financing activities. True False

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