Trusillo Corporation's net operating income last year was $103,000; its interest expense was $17,000; its total stockholders' equity was $1,260,000; and its total liabilities were $380,000.
Required:
Compute the following for Year 2:
a. Times interest earned.
b. Debt-to-equity ratio.

Question

Quizplus · Accepted Answer

The Answer of Trusillo Corporation's net operating income last year was $103,000; its interest expense was $17,000; its total stockholders' equity was $1,260,000; and its total liabilities were $380,000.
Required:
Compute the following for Year 2:
a. Times interest earned.
b. Debt-to-equity ratio.

Trusillo Corporation's Net Operating Income Last Year Was $103,000; Its