The following data were taken from the financial statements of Weal Construction Inc. for December 31, 2010

Question:

The following data were taken from the financial statements of Weal Construction Inc. for December 31, 2010 and 2009:

image

The income before income tax was $720,000 and $560,000 for the years 2010 and 2009, respectively.(a) Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.(b) Determine the number of times the bond interest charges are earned during the year for both years. Round to one decimal place.(c) What conclusions can be drawn from these data as to the company's ability to meet its currently maturing debts?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

Question Posted: