Calculate the times interested earned. Excellent ServiceTrial BalanceDecember 31, 2016Cash in BankPhp 345,000Accounts Receivable90,000Notes Receivable100,000600,000Delivery EquipmentOffice EquipmentAccounts PayableInterest Payable250,000Php 27,0001,000Hyzel, CapitalHyzel, Drawing1,250,00010,000Service Income190,000Rent ExpenseOffice Supplies ExpenseUtilities ExpenseSalaries and wages10,00010,00012,00020,000Gasoline and Oil15,0005,000Repair and MaintenanceInterest Expense1,000Php 1.468,000Php 1.468,000TotalsDo the following:Using the trial balance given above, evaluate the solvency status of the business usingthe following:a) Debt Ratiob) Equity Ratioc) Debt to Equity Ratiod) Times Interest Earned

Interest coverage ratio also termed as times interest earned ratio is a ratio which shows the…

Answered: Calculate the times interested earned.

Business

Accounting

Calculate the times interested earned.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.2DC

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