
Concept Introduction:
Current liabilities: These are the short term liabilities of a company, which are generally to be paid in a year.
Long Term Debt: These are the liabilities other than current liabilities. These are long term liabilities.
Times Interest Earned: Times interest earned is also called interest coverage ratio. It is a measure of a company's ability to honor its debt payments. A lower times interest earned ratio means less earnings are available to meet interest payments.
EBIT: It means earning before interest and Tax.
Requirement 1
To Determine: The Current Liabilities
Requirement 2
To Determine: The long term debt maturing within next 12 months
Requirement 3
To Determine: The time interest earned ratio

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Chapter 11 Solutions
Loose Leaf for Fundamental Accounting Principles
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