Chapter 9, Problem 9.18BE

Calculate ratios (LO9–8)

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

SURF’S UP Selected Balance Sheet Data
		2018	2017
Total assets		$727	$718
Total liabilities		628	530
Total stockholders’ equity		99	188
SURF’S UP Selected Income Statement Data
	2018
Sales revenue	$795
Interest expense	15
Tax expense	44
Net income	66

Based on these amounts, calculate the following ratios for 2018:

1.    Debt to equity ratio.

2.    Return on assets ratio.

3.    Times interest earned ratio.