Refer to the information for Juroe Company below. Juroe Company provided the following income statement for last

Question:

Refer to the information for Juroe Company below.

Juroe Company provided the following income statement for last year:

Sales...............................................$11,300,000

Cost of goods sold.................................3,000,000

Gross margin......................................$ 8,300,000

Operating expenses.................................3,800,000

Operating income.................................$ 4,500,000

Interest expense....................................1,000,000

Income before taxes.............................$ 3,500,000

Income taxes.......................................1,400,000

Net income.......................................$ 2,100,000

Juroe's balance sheet as of December 31 last year showed total liabilities of $10,250,000,total equity of $6,150,000, and total assets of $16,400,000.

Required:

1. Calculate the times-interest-earned ratio.

2. Calculate the debt ratio.

3. Calculate the debt-to-equity ratio.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...