XYZ Co. is has compiled the following financial information as of December 31, 2018.

Services revenues (from camping fees) $132,000 Dividends $ 8,000

Sales revenues (from general store) 25,000 Notes payable LT 10% 50,000

Accounts payable 13,000 Administrative expenses 133,000

Cash 13,500 Supplies 2,500

Equipment 108,000 Common stock 40,000

Retained earnings (1/1/2018) 5,000

Calculate the owners equity for December 31, 2018?

Assume that company issued $25,000 common shares and used the proceeds to purchase equipment. Interpret the Current Ratio, specifically did it improve/ stay the same/ decline following the issuance of common shares and subsequent purchase of equipment? Calculate the Interest Coverage and interpret it within this context.

Will the interest coverage ratio change if tax rate changes?