Identify whether the change in each ratio is an improvement or deterioration. Debt to total assets. Times interest earned.
Identify whether the change in each ratio is an improvement or deterioration. Debt to total assets. Times interest earned.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 4 of 4 < >
The following solvency ratios are available for Sheffield Corporation:
(a)
Debt to total assets.
Times interest earned. 8 times. 13 times.
2021
Debt to total assets.
Times interest earned.
2020
36%.
Identify whether the change in each ratio is an improvement or deterioration.
53%.
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