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MA-16. Long-Term Solvency Ratios Summary data from year-end financial statements of Palm Springs Company for...

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Accounting

MA-16. Long-Term Solvency Ratios Summary data from year-end financial statements of Palm Springs Company for 2017 follow. Summary Income Statement Data Sales $11,692,900 Cost of goods sold 5,135,000 Selling expenses 938,000 Administrative expenses 780,000 Interest expense 2,210,000 Income tax expense 905,000 9,968,000 Net income $1,724,900 Summary Balance Sheet Data Cash $117,000 Total liabilities $900,000 Noncash assets 1,183,000 Stockholders' equity 400,000 Total assets $1,300,000 Total liabilities and equity $1,300,000 Round answers to two decimal places. a. Compute the ratio of times-interest-earned. Answer times b. Compute the debt-to-equity ratio. Answer

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