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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c56831c-b6bf-4c14-bef3-4873954c280a%2F93f728ad-8e70-4183-b62e-18860c094017%2Fj80nxv_processed.png&w=3840&q=75)
Transcribed Image Text: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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