At May 31, 2019, H. J. Klehr Incorporated reported the following amounts (in millions) in its financial statements: 2019 2018 $ 55,000 $ 53,000 28,050 24,910 Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 582 110 542 530 215 4,324 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for H. J. Klehr's assets? 2-b. In 2019 was H J Klebr more (or less) successful at covering its interest costs as compared to 2018?
At May 31, 2019, H. J. Klehr Incorporated reported the following amounts (in millions) in its financial statements: 2019 2018 $ 55,000 $ 53,000 28,050 24,910 Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 582 110 542 530 215 4,324 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for H. J. Klehr's assets? 2-b. In 2019 was H J Klebr more (or less) successful at covering its interest costs as compared to 2018?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A 90.
Transcribed Image Text:At May 31, 2019, H. J. Klehr Incorporated reported the following amounts (in millions) in its financial statements:
2019
2018
$ 55,000 $ 53,000
24,910
Total Assets
Total Liabilities 28,050
Interest Expense
Income Tax Expense
Net Income
582
110
542
530
215
4,324
Required:
1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018.
2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for H. J. Klehr's assets?
2-b. In 2019, was H. J. Klehr more (or less) successful at covering its interest costs, as compared to 2018?
Debt-to-Assets
Times Interest Earned Ratio
Compute the debt-to-assets ratio and times interest earned
ratio for 2019 and 2018. (Round your answers to 2 decimal
places.)
2019
2018
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