Sunland's financial statements contained the following selected data (in millions).Current assets$3,618.0Total assets28,500.0Current liabilities5,400.0Total liabilities11,115.0Interest expense$300.0Income tax expense1,170.0Net income1,332.0Compute the following values. (Round current ratio and times interest earned to 2 decimal places, e.g. 6.25:1 or 2.66 and debtto assets ratio to O decimal places, e.g. 25%.)(a)Current ratio0.67:1(b)Debt to assets ratio39%(c)Times interest earned9.34times

(a) Current RatioThe current ratio is calculated as:Current Ratio=Current Assets/Current Liabilities…

Answered: Sunland's financial statements…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 32BEB

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