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Western World Has the Following Selected Data ($ in Millions)

Question 149

Essay

Western World has the following selected data ($ in millions):
 Balance Sheet Data 20122011 Total Assets $2,511$2,315 Total Liabilities 1,6851,525 Total Stockholders’ Equity 826790\begin{array}{lrr}\text { Balance Sheet Data }&2012&2011\\\text { Total Assets } & \mathbf{\$ 2 , 5 1 1} & \mathbf{\$ 2 , 3 1 5} \\\text { Total Liabilities } & 1,685 & 1,525 \\\text { Total Stockholders' Equity } & 826 & 790\end{array}

 Income Statement Data  Sales $786 Interest Expense 77 Tax Expense 32 Net Income 80\begin{array}{lr}\text { Income Statement Data }\\\text { Sales } & \$ 786 \\\text { Interest Expense } & 77 \\\text { Tax Expense } & 32 \\\text { Net Income } & 80\end{array}
Based on these amounts,calculate the following ratios for Western World in 2012:
1.Debt to equity ratio.
2.Return on assets ratio.
3.Return on equity ratio.
4.Times interest earned ratio.

Correct Answer:

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