Calculate times interest earned for the year ended december

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Reference no: EM13891268

Calculate financial leverage measures The following information was available for the year ended December 31, 2013:

Earnings before interest and taxes (operating income)

$60,000

Net income

$ 35,000

Total assets at year-end

200,000

Interest expense

10,000

Total liabilities at year-end

120,000

Income tax expense

15,000

 

 

Required:

a. Calculate the debt ratio at December 31, 2013.

b. Calculate the debt/equity ratio at December 31, 2013.

c. Calculate the times interest earned for the year ended December 31, 2013.

Reference no: EM13891268

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