Hello,

I'm seeking some assitance with the following question,

Many thanks

The following nancial information regarding Emily's Editors Pty Ltd is available: 2015 Total assets $530000 Total liabilities 140000 Total shareholders' equity 390000 2015 Statement of comprehensive income Revenue $ 250000 Cost of goods sold 125000 Gross profit $ 125 000 Operating expenses 40000 Profits before interest and taxes 85000 Interest expense 10000 Profits before taxes $ 75000 Income tax expense 25000 Comprehensive income (no tax) 12 000 Total comprehensive income $ 62 000 Required a Calculate the following ratios: i debt to assets ii debt to equity iii times interest earned. b Discuss the solvency of Emily Editors. Does the company rely more on equity or debt to nance its operations