CEC Entertainment, which owns the Chuck E. Cheese pizza chain, has the following selected data ($ in millions):

Based on these amounts, calculate the following ratios for 2008:
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 on assets?

Transcribed Image Text:

CEC ENTERTAINMENT CEC ENTERTAINMENT Selected Income Statement Data Selected Balance Sheet Data 2008 2007 $747 $738 618 520 Total stockholders' equity 129 218 $815 17 34 56 Total assets Total liabilities Tax expense Net income