Comparative financial statements for Weller Corporation for the fiscal year ending December 31 appear in the chart attached. The company did not issue any new common or preferred stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.25. The market value of the company's common stick at the end of the year was $18. All of the company's sales are on account.
Compute the following financial ratios for long-term creditors for this year:
1. Times interest earned ratio
2. Debt-to-equity ratio
See attached file for chart of data.© BrainMass Inc. brainmass.com June 4, 2020, 1:16 am ad1c9bdddf
Compute the following financial ratios for long-term creditors ...
Solution explains Financial Ratios for Long-Term Creditors