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Calculate the times interested earned.

Calculate the times interested earned.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate the times interested earned.
Excellent Service Trial Balance December 31, 2016 Cash in Bank Php 345,000 Accounts Receivable 90,000 Notes Receivable 100,000 600,000 Delivery Equipment Office Equipment Accounts Payable Interest Payable 250,000 Php 27,000 1,000 Hyzel, Capital Hyzel, Drawing 1,250,000 10,000 Service Income 190,000 Rent Expense Office Supplies Expense Utilities Expense Salaries and wages 10,000 10,000 12,000 20,000 Gasoline and Oil 15,000 5,000 Repair and Maintenance Interest Expense 1,000 Php 1.468,000 Php 1.468,000 Totals Do the following: Using the trial balance given above, evaluate the solvency status of the business using the following: a) Debt Ratio b) Equity Ratio c) Debt to Equity Ratio d) Times Interest Earned
Transcribed Image Text:Excellent Service Trial Balance December 31, 2016 Cash in Bank Php 345,000 Accounts Receivable 90,000 Notes Receivable 100,000 600,000 Delivery Equipment Office Equipment Accounts Payable Interest Payable 250,000 Php 27,000 1,000 Hyzel, Capital Hyzel, Drawing 1,250,000 10,000 Service Income 190,000 Rent Expense Office Supplies Expense Utilities Expense Salaries and wages 10,000 10,000 12,000 20,000 Gasoline and Oil 15,000 5,000 Repair and Maintenance Interest Expense 1,000 Php 1.468,000 Php 1.468,000 Totals Do the following: Using the trial balance given above, evaluate the solvency status of the business using the following: a) Debt Ratio b) Equity Ratio c) Debt to Equity Ratio d) Times Interest Earned
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