Reiner Business reported net income of ($ 97750) for 20X2. Interest expense of ($ 6000) was deducted

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Reiner Business reported net income of \(\$ 97750\) for 20X2. Interest expense of \(\$ 6000\) was deducted in the calculation of this net income. The schedule shows other information about the business' capital structure.

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Required:
a Calculate the return on total assets for 20X2.
b Calculate the return on owner's equity for \(20 \mathrm{X} 2\).
c Calculate the debt ratio at the end of 20X2. How does this compare with the debt ratio at the end of 20X1?

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Accounting Information For Business Decisions

ISBN: 9780170253703

2nd Edition

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons

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