The president of Rodrigez, Inc., has asked you to gather some statistics about his corporation's solvency. You have compiled the following data: Profit = 900,000 Income Tax Rate = 35% Interest Expense =100,000 Total Liabilities = 2,048,000 Total Equity = 4,352,000 Using these data, calculate: 1. Times interest earned ratio 2. Debit ratio 3. Equity ratio
The president of Rodrigez, Inc., has asked you to gather some statistics about his corporation's solvency. You have compiled the following data: Profit = 900,000 Income Tax Rate = 35% Interest Expense =100,000 Total Liabilities = 2,048,000 Total Equity = 4,352,000 Using these data, calculate: 1. Times interest earned ratio 2. Debit ratio 3. Equity ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 2 (Solvency Ratios)
The president of Rodrigez, Inc., has asked you to gather some statistics about his corporation's solvency. You have compiled the following data:
Profit = 900,000
Income Tax Rate = 35%
Interest Expense =100,000
Total Liabilities = 2,048,000
Total Equity = 4,352,000
Using these data, calculate:
1. Times interest earned ratio
2. Debit ratio
3. Equity ratio
Please provide a solution.
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