Tolbert Plumbing Products Ltd. reported the following data in 2018 (in millions):

Compute Tolbert’s leverage ratio, debt ratio, and times-interest-earned ratio, and write a sentence to explain what those ratio values mean. Use year-end figures in place of averages where needed for the purpose of calculating the ratios. Would you be willing to lend Tolbert $1 million? Why or why not?

Transcribed Image Text:

2018 $ 28.9 Net operating revenues Operating expenses. Operating income 24.2 4.7 Nonoperating items: Interest expense (0.8) Other . (0.2) $ 3.7 Net income Total assets $150.0 Total common stockholders' equity... 57.0