Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to answer the questions: Assets Liabilities and Equity Cash 14,000 Accounts payable 22,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable

Use the following information to answer the questions: Assets Liabilities and Equity Cash 14,000 Accounts payable 22,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 6,000 Current liabilities 28,000 Inventory 39,000 Long-term debt 95,000 Current assets 61,000 Total liabilities 123,000 Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings 32,000 Net fixed assets 114,000 Equity 52,000 Total assets 175,000 Total liab. & equity 175,000 Line item Value Sales 85,000 - Costs 69,700 - Depreciation 2,000 = EBIT 13,300 - Interest 800 = Taxable income 12,500 - Taxes 4,125 = Net income 8,375 Part 1 What is the total debt ratio (including all liabilities)? 2+ decimals Submit Part 2 What is the times-interest-earned ratio? 1+ decimals Submit Attempt 1/10 for 10 pts. Attempt 1/10 for 10 pts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions