A company's calendar-year financial data are shown below. The company has pledged all of its net plant assets as security for its long-term notes payable:
Calculate the following ratios for this company:
(a) Equity ratio.
(b) Pledged assets to secured liabilities ratio.
(c) Times interest earned.

Question

A company's calendar-year financial data are shown below. The company has pledged all of its net plant assets as security for its long-term notes payable:
  Calculate the following ratios for this company:
(a) Equity ratio.
(b) Pledged assets to secured liabilities ratio.
(c) Times interest earned.

Quizplus · Accepted Answer

The Answer of A company's calendar-year financial data are shown below. The company has pledged all of its net plant assets as security for its long-term notes payable:
  Calculate the following ratios for this company:
(a) Equity ratio.
(b) Pledged assets to secured liabilities ratio.
(c) Times interest earned.

A Company's Calendar-Year Financial Data Are Shown Below