1.)Times interest earned ratio 2.)Debt ratio 3.)Equity ratio
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 3P
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Question
The President of Paroy, has asked you to gather some statistics about his Company’s solvency. You have compiled the following data:
Net Income Income Tax Rate |
P 900 000 34% |
Total Liabilities Total Stockholders |
2 048 000 |
Interest Expense |
100 000 |
Equity |
4 352 000 |
REQUIRED: Using these data, calculate:
1.)Times interest earned ratio 2.)Debt ratio 3.)Equity ratio
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