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Calculate the debt ratio at December

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Reference no: EM132602005

Question - The following information was available for the year ended December 31, 2019:

Earnings before interest and taxes (operating income) $97,500

Interest expense 15,000

Income tax expense 22,500

Net income 60,000

Total assets at year-end 288,000

Total liabilities at year-end 216,000

Required -

(a) Calculate the debt ratio at December 31, 2019.

(b) Calculate the debt/equity ratio at December 31, 2019.

(c) Calculate the times interest earned for the year ended December 31, 2019.

Reference no: EM132602005

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