Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 19

Times-Interest-Earned Ratio, Debt Ratio, Debt-to-Equity Ratio
Juroe Company provided the following income statement for last year:
Juroe's balance sheet as of December 31 last year showed total liabilities of $10,250,000, total equity of $6,150,000, and total assets of $16,400,000.
Refer to the information for Juroe Company above.
Required:
Note : Round answers to two decimal places.
1. Calculate the times-interest-earned ratio.
2. Calculate the debt ratio.
3. Calculate the debt-to-equity ratio.