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Times-Interest-Earned Ratio, Debt Ratio, Debt-to-Equity Ratio Juroe Company provided the following income statement for last year: Sales $12,200,000 7,400,000 Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before taxes Income taxes Net income $4,800,000 2,800,000 $2,000,000 600,000 $1,400,000 670,000 $730,000 Juroe's balance sheet as of December 31 last year showed total liabilities of $2,560,000, total equity of $9,370,000, and total assets of $11,930,000. Required: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 1.7 X times 2. Calculate the debt ratio. 0.21 3. Calculate the debt-to-equity ratio. 0.27

Times-Interest-Earned Ratio, Debt Ratio, Debt-to-Equity Ratio Juroe Company provided the following income statement for last year: Sales $12,200,000 7,400,000 Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before taxes Income taxes Net income $4,800,000 2,800,000 $2,000,000 600,000 $1,400,000 670,000 $730,000 Juroe's balance sheet as of December 31 last year showed total liabilities of $2,560,000, total equity of $9,370,000, and total assets of $11,930,000. Required: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 1.7 X times 2. Calculate the debt ratio. 0.21 3. Calculate the debt-to-equity ratio. 0.27

FINANCIAL ACCOUNTING
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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Times-Interest-Earned Ratio, Debt Ratio, Debt-to-Equity Ratio Juroe Company provided the following income statement for last year: Sales $12,200,000 7,400,000 Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before taxes Income taxes Net income $4,800,000 2,800,000 $2,000,000 600,000 $1,400,000 670,000 $730,000 Juroe's balance sheet as of December 31 last year showed total liabilities of $2,560,000, total equity of $9,370,000, and total assets of $11,930,000. Required: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 1.7 X times 2. Calculate the debt ratio. 0.21 3. Calculate the debt-to-equity ratio. 0.27
Transcribed Image Text:Times-Interest-Earned Ratio, Debt Ratio, Debt-to-Equity Ratio Juroe Company provided the following income statement for last year: Sales $12,200,000 7,400,000 Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before taxes Income taxes Net income $4,800,000 2,800,000 $2,000,000 600,000 $1,400,000 670,000 $730,000 Juroe's balance sheet as of December 31 last year showed total liabilities of $2,560,000, total equity of $9,370,000, and total assets of $11,930,000. Required: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 1.7 X times 2. Calculate the debt ratio. 0.21 3. Calculate the debt-to-equity ratio. 0.27
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