A company had the following selected data for two consecutive years of operation. Year 1 $12,000,000 6,000,000 Interest expense 300,000 Income tax expense 790,000 Profit 1,850,000 Using this data, determine the percentage change in the company's debt to total assets ratio from Year 1 to Year 2. Total assets Total liabilities increase of 2% O decrease of 8% O no change O increase of 1% Year 2 $15,000,000 7,800,000 450,000 900,000 2,250,000
A company had the following selected data for two consecutive years of operation. Year 1 $12,000,000 6,000,000 Interest expense 300,000 Income tax expense 790,000 Profit 1,850,000 Using this data, determine the percentage change in the company's debt to total assets ratio from Year 1 to Year 2. Total assets Total liabilities increase of 2% O decrease of 8% O no change O increase of 1% Year 2 $15,000,000 7,800,000 450,000 900,000 2,250,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 19BEA
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