Aire Corporation reports the following selected financial statement information at December 31 2017: $$\begin{array} { l r }
\text { Total Assets } & \$ 120,000 \
\text { Total Liabilities } & 75,000 \
\text { Net Income } & 20,000 \
\text { Interest Revenue } & 1,600 \
\text { Interest Expense } & 800 \
\text { Income Tax Expense } & 400
\end{array}$$ Instructions
Calculate the debt to assets and times interest earned ratios.

Question

Aire Corporation reports the following selected financial statement information at December 31 2017: $$\begin{array} { l r } 
\text { Total Assets } & \$ 120,000 \
\text { Total Liabilities } & 75,000 \
\text { Net Income } & 20,000 \
\text { Interest Revenue } & 1,600 \
\text { Interest Expense } & 800 \
\text { Income Tax Expense } & 400
\end{array}$$ Instructions
Calculate the debt to assets and times interest earned ratios.

Quizplus · Accepted Answer

The Answer of Aire Corporation reports the following selected financial statement information at December 31 2017: $$\begin{array} { l r } 
\text { Total Assets } & \$ 120,000 \
\text { Total Liabilities } & 75,000 \
\text { Net Income } & 20,000 \
\text { Interest Revenue } & 1,600 \
\text { Interest Expense } & 800 \
\text { Income Tax Expense } & 400
\end{array}$$ Instructions
Calculate the debt to assets and times interest earned ratios.

Aire Corporation Reports the Following Selected Financial Statement Information at December