Surf’s Up, a manufacturer of surfing supplies and training equipment, has the following selected data ($ in millions):Based on these amounts, calculate the following ratios for 2021: 1. Debt to equity ratio. 2. Return on assets ratio. 3. Times interest earned ratio. SURF'S UPSURF'S UPSelected Balance Sheet DataSelected Income Statement Data202120202021Total assets$727$718Sales revenue$795Total liabilities628530Interest expense15Total stockholders' equity99188Тах еxpense44Net income66

1. Calculate debt to equity ratio.

SURF'S UP SURF'S UP Selected Balance Sheet Data Selected Income Statement Data 2021 2020 2021 Total assets $727 $718 Sales revenue $795 Total liabilities 628 530 Interest expense 15 Total stockholders' equity 99 188 Тах еxpense 44 Net income 66

SURF'S UP SURF'S UP Selected Balance Sheet Data Selected Income Statement Data 2021 2020 2021 Total assets $727 $718 Sales revenue $795 Total liabilities 628 530 Interest expense 15 Total stockholders' equity 99 188 Тах еxpense 44 Net income 66

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Surf’s Up, a manufacturer of surfing supplies and training equipment, has the following selected data ($ in millions):

Based on these amounts, calculate the following ratios for 2021:
1. Debt to equity ratio.
2. Return on assets ratio.
3. Times interest earned ratio.

SURF'S UP
SURF'S UP
Selected Balance Sheet Data
Selected Income Statement Data
2021
2020
2021
Total assets
$727
$718
Sales revenue
$795
Total liabilities
628
530
Interest expense
15
Total stockholders' equity
99
188
Тах еxpense
44
Net income
66

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