Calculating Leverage Ratios Tag Corp. reported the following amounts (in millions) in a recent Form 10-K. Total assets $111,383 Total liabilities 67,973 Total noncurrent liabilities 38,863 Total stockholders' equity 40,578 Total earnings 4,928 Interest expense 2,815 Net earnings before taxes and interest 10,150 Compute the following ratios. Note: Enter the answers rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425 a. Total liabilities-to-equity Answer b. Total liabilities-to-total assets Answer c. Times interest earned Answer
Calculating Leverage Ratios Tag Corp. reported the following amounts (in millions) in a recent Form 10-K. Total assets $111,383 Total liabilities 67,973 Total noncurrent liabilities 38,863 Total stockholders' equity 40,578 Total earnings 4,928 Interest expense 2,815 Net earnings before taxes and interest 10,150 Compute the following ratios. Note: Enter the answers rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425 a. Total liabilities-to-equity Answer b. Total liabilities-to-total assets Answer c. Times interest earned Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculating Leverage Ratios
Tag Corp. reported the following amounts (in millions) in a recent Form 10-K.
| Total assets | $111,383 |
| Total liabilities | 67,973 |
| Total noncurrent liabilities | 38,863 |
| Total |
40,578 |
| Total earnings | 4,928 |
| Interest expense | 2,815 |
| Net earnings before taxes and interest | 10,150 |
Compute the following ratios.
Note: Enter the answers rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425
| a. Total liabilities-to-equity | Answer |
| b. Total liabilities-to-total assets | Answer |
| c. Times interest earned | Answer |
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