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Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018?

Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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E10-10 (Algo) Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5] At May 31, 2019, FOR Deliveries reported the following amounts (in millions) in its financial statements: 2019 $ 62,000 35,960 668 Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018? Req 1 Complete this question by entering your answers in the tabs below. Req 2A 135 660 Req 28 In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? Greater Lesser Total Assets Total Liabilities Interest Expense Income Tax Expense Net Incone Req 1 E10-10 (Algo) Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5) Req 2A <Req1 At May 31, 2019, FOR Deliveries reported the following amounts (in millions) in its financial statements: 2018 $ 60,000 32,400 2018 $ 60,000 32,400 630 240 5,199 Reg 28 $ 62,000 35,960 648 135 660 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018? Complete this question by entering your answers in the tabs below. Req 28 > 240 5,199 <Req2A In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018? OMore Oless Req 20 >
Transcribed Image Text:E10-10 (Algo) Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5] At May 31, 2019, FOR Deliveries reported the following amounts (in millions) in its financial statements: 2019 $ 62,000 35,960 668 Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018? Req 1 Complete this question by entering your answers in the tabs below. Req 2A 135 660 Req 28 In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? Greater Lesser Total Assets Total Liabilities Interest Expense Income Tax Expense Net Incone Req 1 E10-10 (Algo) Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5) Req 2A <Req1 At May 31, 2019, FOR Deliveries reported the following amounts (in millions) in its financial statements: 2018 $ 60,000 32,400 2018 $ 60,000 32,400 630 240 5,199 Reg 28 $ 62,000 35,960 648 135 660 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018? Complete this question by entering your answers in the tabs below. Req 28 > 240 5,199 <Req2A In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018? OMore Oless Req 20 >
E10-10 (Algo) Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5] At May 31, 2019, FOR Deliveries reported the following amounts (in millions) in its financial statements: Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 2019 $ 62,000 35,960 668 135 660 Debt-to-Assets Times Interest Earned Ratio Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018? 2019 Complete this question by entering your answers in the tabs below. 2018 $ 60,000 32,400 Req 1 Req 2A Req 28 Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. (Round your answers to 2 decimal places.) 630 240 5,199 2018 < Req 1 Req ZA >
Transcribed Image Text:E10-10 (Algo) Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5] At May 31, 2019, FOR Deliveries reported the following amounts (in millions) in its financial statements: Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 2019 $ 62,000 35,960 668 135 660 Debt-to-Assets Times Interest Earned Ratio Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for FOR's assets? 2-b. In 2019, was FOR more (or less) successful at covering its interest costs, as compared to 2018? 2019 Complete this question by entering your answers in the tabs below. 2018 $ 60,000 32,400 Req 1 Req 2A Req 28 Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. (Round your answers to 2 decimal places.) 630 240 5,199 2018 < Req 1 Req ZA >
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