Surfs Up, a manufacturer of surfing supplies and training equipment, has the following selected data ($ in

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

Based on these amounts, calculate the following ratios for 2015:
1. Debt to equity ratio.
2. Return on assets ratio.
3. Return on equity ratio.
4. Times interest earned ratio.
Why is the return on equity higher than the return onassets?

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SURF'S UP SURF'S UP Selected Income Statement Data Selected Balance Sheet Data 2015 2014 $727 $718 628 530 Total stockholders' equity 99 188 2015 Total assets Total liabilities Sales revenue $795 Interest expense15 Tax expense Net income