
Concept explainers
Current Liabilities:
Current liabilities are those liabilities that a company has to pay within a year.
Times Interest Earned Ratio:
It a ratio that helps in measuring the company’s ability to pay off its interest through the income generated by a company before interest and tax. It tells that how much amount a company has to use to pay off its interest obligation.
1.
To identify: The current liabilities on M’s
2.
To compute: The potion (in %) of M’s long term debts that matures with the next 12 months.
3.
To compute:-The times interest earned ratio of company M for the year ended 31st December 2015 and to comment on the times interest earned ratio.

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Chapter 9 Solutions
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
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