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Given the Following Information for the Siri Company, Calculate the Ratios

Question 160

Essay

Given the following information for the Siri Company, calculate the ratios as requested.
 December 31, December 31, Year 1 Year 2 Current assets $100,000$150,000 Noncurrent assets 400,000500,000 Current liabilities 50,000100,000 Long-term debt 300,000300,000 Common stock, 10,000 shares 100,000100,000 Retained earmings 50,000150,000\begin{array}{lll}&\text { December } 31, & \text { December } 31, \\&\text { Year } 1 & \text { Year } 2\\\text { Current assets } & \$ 100,000 & \$ 150,000 \\\text { Noncurrent assets } & 400,000 & 500,000 \\\text { Current liabilities } & 50,000 & 100,000 \\\text { Long-term debt } & 300,000 & 300,000 \\\text { Common stock, } 10,000 \text { shares } & 100,000 & 100,000 \\\text { Retained earmings } & 50,000 & 150,000\end{array}

 Year 2 Net income $100,000 Interest expense 40,000 Income taxes 30,000 Total revenues 1,000,000\begin{array}{lc}&\text { Year } 2\\\text { Net income } & \$ 100,000 \\\text { Interest expense } & 40,000 \\\text { Income taxes } & 30,000 \\\text { Total revenues } & 1,000,000\end{array}

a. Interest coverage ratio
b. Long-term debt ratio at December 31, Year 2
c. Total assets tumover

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