Question

The classified balance sheet and selected income statement data for Quinn, Inc., as of December 31 , 201 2, are presented next.


Selected Income Statement Data
Gross Profit ........................................................ $163,400
Operating Expenses ............................................ 135,600
Earnings Before Interest and Taxes .................... 27,800
Interest Expense ................................................. 18,700
Income Tax Expense ........................................... 2,900
Net Income ......................................................... 6,200

Requirements
1. C alculate Quinn’s debt ratio and interest coverage ratio as of December 31 , 201 2. Round to two decimal places.
2. What percentage of Quinn’s assets belong to the stockholders?
3. Would you be willing to extend credit to Quinn, Inc? Why or whynot?


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  • CreatedApril 29, 2014
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