Twin Lakes Company has the following values taken from its 2019 annual report (in thousands):
$$\begin{array} { l r }
\text { Interest expense } & \$ 37,000 \
\text { Sales } & 480,000 \
\text { Earnings before interest and taxes } & 300,000 \
\text { Total liabilities } & 797,500 \
\text { Stockhalders' equity } & 600,000
\end{array}$$ a. Calculate Twin Lakes Company's times-interest-earned ratio.
b. Calculate Twin Lakes Company's debt-to-equity ratio.

Question

Twin Lakes Company has the following values taken from its 2019 annual report (in thousands):
 $$\begin{array} { l r } 
\text { Interest expense } & \$ 37,000 \
\text { Sales } & 480,000 \
\text { Earnings before interest and taxes } & 300,000 \
\text { Total liabilities } & 797,500 \
\text { Stockhalders' equity } & 600,000
\end{array}$$ a. Calculate Twin Lakes Company's times-interest-earned ratio.
b. Calculate Twin Lakes Company's debt-to-equity ratio.

Quizplus · Accepted Answer

The Answer of Twin Lakes Company has the following values taken from its 2019 annual report (in thousands):
 $$\begin{array} { l r } 
\text { Interest expense } & \$ 37,000 \
\text { Sales } & 480,000 \
\text { Earnings before interest and taxes } & 300,000 \
\text { Total liabilities } & 797,500 \
\text { Stockhalders' equity } & 600,000
\end{array}$$ a. Calculate Twin Lakes Company's times-interest-earned ratio.
b. Calculate Twin Lakes Company's debt-to-equity ratio.

Twin Lakes Company Has the Following Values Taken from Its