Following is the statement of financial position for Kowalski Company in Warsaw, Poland, as of December 31, 2019 (currency in Polish złaty [‘z-wo-tee’], zł): Non-current assets zł 242,000 Equity zł 107,000 Current assets 105,000 Non-current liabilities 160,000 ________ Current liabilities 80,000 Total assets zł 347,000 Total equity and liabilities zł 347,000 In addition, Kowalski reported net income for 2019 of zł 140,000, income tax expense of zł 28,000, and interest expense of zł 9,000. Instructions: A. Compute the debt ratio for Kowalski for 2019. B. Compute the times interest earned for Kowalski for 2019. * Use ‘zl’ if you have difficulty in typing in ‘zł’.
Following is the statement of financial position for Kowalski Company in Warsaw, Poland, as of December 31, 2019 (currency in Polish złaty [‘z-wo-tee’], zł): Non-current assets zł 242,000 Equity zł 107,000 Current assets 105,000 Non-current liabilities 160,000 ________ Current liabilities 80,000 Total assets zł 347,000 Total equity and liabilities zł 347,000 In addition, Kowalski reported net income for 2019 of zł 140,000, income tax expense of zł 28,000, and interest expense of zł 9,000. Instructions: A. Compute the debt ratio for Kowalski for 2019. B. Compute the times interest earned for Kowalski for 2019. * Use ‘zl’ if you have difficulty in typing in ‘zł’.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Following is the
Non-current assets zł 242,000 Equity zł 107,000
Current assets 105,000 Non-current liabilities 160,000
________ Current liabilities 80,000
Total assets zł 347,000 Total equity and liabilities zł 347,000
In addition, Kowalski reported net income for 2019 of zł 140,000, income tax
expense of zł 28,000, and interest expense of zł 9,000.
Instructions:
A. Compute the debt ratio for Kowalski for 2019.
B. Compute the times interest earned for Kowalski for 2019.
* Use ‘zl’ if you have difficulty in typing in ‘zł’.
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