The following solvency ratios are available for Fromage Corporation: __________________2015 _2014 Debt to total assets ...................... 40%

Question:

The following ratios are available for Fromage Corporation:
______________________________2015 _____________2014
Debt to total assets ...................... 40% ....................52%
Times interest earned ................ 7 times ................11 times
(a) Identify whether the change in each ratio is an improvement or deterioration.
(b) Did the company's overall improve or deteriorate in 2015?
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...

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

See More Books

Question Posted: Jan 11, 2017 10:23 AM

See More Questions

The following solvency ratios are available for Fromage Corporation: ______________________________2015 _____________2014 Debt to total assets ...................... 40%

Question:

Step by Step Answer:

a Debt to total assets Improvement Times interest earned Deterioration b Although From...View the full answer

Financial Accounting Tools for Business Decision Making

Students also viewed these Accounting questions

The following solvency ratios are available for Fromage Corporation: __________________2015 _2014 Debt to total assets ...................... 40%