Question: Problem 1 (5 points) Jupiter Company has provided the following comparative information: Net Income before income tax Income Tax Expense Interest Average total Assets Average
Problem 1 (5 points) Jupiter Company has provided the following comparative information: Net Income before income tax Income Tax Expense Interest Average total Assets Average total stockholders' equity 2013 100,000 30,000 144,000 2,300,000 1,100,000 2012 150,000 45,000 138,000 2.150,000 1,000,000 Industry Ratios 2012-2013 1. Return on Assets 12% 2. Return on Equity 15% 3. Number of time interest Earned 3.0 4. Debt Equity Ratios 1.5:1 Calculate the four ratios each for 2012 and 2013 for the company and compare with the industry ratios given to you. Explain your results
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