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Requirement 1. Calculate Patterson, Inc.'s debt ratio and interest coverage ratio as of December 31,...

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Accounting

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Requirement 1. Calculate Patterson, Inc.'s debt ratio and interest coverage ratio as of December 31, 2016. Round to two decimal places. Earnings Begin by calculating Patterson, Inc.'s debt ratio. Select the formula and then enter the amounts to calculate the ratio. (Abbreviation used: EBIT before interest and taxes. Enter the ratio as a decimal to two places, .XX.) Debt ratio Now calculate Patterson, Inc.'s interest coverage ratio. Select the formula and then enter the amounts to calculate the ratio. (Abbreviation used: EBIT = Earnings before interest and taxes. Round the ratio to two decimal places, .Xx.) Interest coverage ratio Requirement 2. What percentage of Patterson, Inc.'s assets belong to the stockholders? (Enter the amount as a whole percent, X%.) % of the company's assets belong to the stockholders. Requirement 3. Would you be willing to extend credit to Patterson, Inc.? Why or why not? (Assume that the average debt ratio for most companies ranges from 0.57 to 0.67 and the average interest coverage ratio for most companies ranges from 1 to 3.) ? | be willing to extend credit to Patterson since the company's debt ratio is The interest coverage ratio ?| indicating that its ability to repay any additional debt is V

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