Pettengill Corporation's net operating income last year was $280,000;its interest expense was $37,000;its total stockholders' equity was $920,000;and its total liabilities were $620,000.
Required:
Compute the following for Year 2:
a.Times interest earned.
b.Debt-to-equity ratio.

Question

Quizplus · Accepted Answer

The Answer of Pettengill Corporation's net operating income last year was $280,000;its interest expense was $37,000;its total stockholders' equity was $920,000;and its total liabilities were $620,000.
Required:
Compute the following for Year 2:
a.Times interest earned.
b.Debt-to-equity ratio.

Pettengill Corporation's Net Operating Income Last Year Was $280,000;its Interest