Question

Sanchez Industrial Supply had the following balances as of December 31, 2012:
Total Current Assets............................................................................................ $ 80,000
Total Long-Term Assets...................................................................................... 320,000
Total Current Liabilities....................................................................................... 20,000
Total Long-Term Liabilities ................................................................................. 200,000
Total Stockholders’ Equity .................................................................................. 180,000
Earnings Before Interest and Taxes .................................................................... 73,800
Interest Expense ................................................................................................ 18,700
Income Tax Expense .......................................................................................... 21,900
Net Income ........................................................................................................ 33,200

Requirements
1. Calculate Sanchez Industrial Supply’s debt ratio as of December 31, 201 2.
2. Calculate Sanchez Industrial Supply’s interest coverage ratio for 201 2. Round your answer to 2 decimal places.



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  • CreatedApril 29, 2014
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