Rising Stars Academy provided the following information on its 2019 Balance Sheet and Statement of Cash Flows:Long-term debt$ 4,400Interest expense$ 398Total liabilities8,382Net income559Total assets38,775Interest payments432Total equity29,803Cash flows from operations1,015Operating income1,223Income tax expenses266Income taxes paid150Required:Calculate the following ratios for Rising Stars Academy. Round your answers to three decimal places.a. Debt to equityb. Debt to total assetsc. Long-term debt to equityd. Times interest earned (accrual basis)e. Times interest earned (cash basis)

Debt to Equity Ratio = Total Liabilities / Total Equity Debt to Total asset = Total Liabilities /…

Calculate the following ratios for Rising Stars Academy. Round your answers to three decimal places. a. Debt to equity b. Debt to total assets c. Long-term debt to equity d. Times interest earned (accrual basis) e. Times interest earned (cash basis)

Calculate the following ratios for Rising Stars Academy. Round your answers to three decimal places. a. Debt to equity b. Debt to total assets c. Long-term debt to equity d. Times interest earned (accrual basis) e. Times interest earned (cash basis)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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Question

Rising Stars Academy provided the following information on its 2019 Balance Sheet and Statement of Cash Flows:
Long-term debt
$ 4,400
Interest expense
$ 398
Total liabilities
8,382
Net income
559
Total assets
38,775
Interest payments
432
Total equity
29,803
Cash flows from operations
1,015
Operating income
1,223
Income tax expenses
266
Income taxes paid
150
Required:
Calculate the following ratios for Rising Stars Academy. Round your answers to three decimal places.
a. Debt to equity
b. Debt to total assets
c. Long-term debt to equity
d. Times interest earned (accrual basis)
e. Times interest earned (cash basis)

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