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3 years ago

The following information was available for the year ended December 31, 2016:

Business

1 answer:

nexus9112 [7]3 years ago

3 0

Answer and Explanation:

The calculation is given below:

a. The debt ratio is

= Total liabilities ÷ total assets

= $148,000 ÷ $270,000

= 0.5 times

b. The debt/equity ratio is

= Debt ÷ equity

= $148,000 ÷ ($270,000 - $148,000)

= $148,000 ÷ $122,000

= 1.21 times

c. The times interest earned ratio is

= earning before interest and taxes ÷ interest expense

= $81,000 ÷ $17,000

= 4.76 times

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3 years ago

An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2007, for $540,000. On January 1, 2017,

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Answer:

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Explanation:

Given:

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