The Culleye Corporation reported the following solvency ratios: _______________________ 2014 ____________ 2013 Debt to total assets ............56.0%

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The Culleye Corporation reported the following solvency ratios:
_______________________ 2014 ____________ 2013
Debt to total assets ............56.0% ................. 52.8%
Interest coverage .............. 5.1 times .......... 3.3 times
(a) Identify if each of the above solvency ratios is better or worse in 2014, compared with 2013.
(b) Has Culleye's overall solvency position improved or deteriorated in 2014? Explain.
Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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