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 SheetBalance 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...
Step by Step Answer:
Cornerstones of Managerial Accounting
ISBN: 978-1305103962
6th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger