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The classified balance sheet and selected income statement data for Baker, Inc., as of December 31, 2018, are presented next (Click the icon to view the classified balance sheet) (Click the icon to view the selected income statement data) Read the requirements Requirement 1. Calculate Baker, Inc.'s debt ratio and interest coverage ratio as of December 31, 2018. Round to two decimal places Begin by calculating Baker. Inc.'s debt ratio Select the formula and then enter the amounts to calculate the ratio (Abbreviation used EBIT- Earnings before interest and teos. Estur the ratio as a decimal to two places. XX.) Debit ratio Now calculate Baker, 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 rabo Requirement 2. What percentage of Baker, Inc.'s assets belong to the stockholders? (Enter the amount as a whole percent. X.) % of the company's ansets belong to the stockholders Requirement 3. Would you be willing to extend credit to Baker, Inc.? Why or why not? (Assume that the average debt ratio for most companies ranges from 0.57 0.67 and the average interest coverage ratio for most companies ranges from 1 to 3.) be willing to extend credit to Baker since the company's debt ratio is indicating that its ability to repay any additional debt is wa ratio V The Inhorst Choose from any list or enter any number in the input fields and then continue to the next question. uirer at 1. Culati doci Current assets $ Baker, Inc Balance Sheet December 31, 2018 Current liabilities: 7,200 Accounts payable 1,200 Sataries payable 500 Unearned service revenue 12,000 Note payable 20,900 Total current liabilities 5 Cash Accounts receivable Supplies Prepaid rent 2.500 1,700 Ball the 9,100 7,000 Total current assets 20.300 Fixed assets: Land 10,000 140,000 35,000 Equipment Less: Accumulated Long-term debt: 60,000 Mortgage note payable Bonds payable Total long-term debt 21,000 Stockholders' Equity 150,000 14,000 depreciation, equipment Building 300,000 Print Done 1 Data Table ad bal se icon Accounts receivable quirer at 1. 1.700 Supplies Prepaid rent culati dec 1.200 Salaries payable 500 Unearned service revenue 12,000 Note payable 20,900 Total current liabilities 9,100 7.000 Total current assets 20,300 Fixed assets: Land Bal he Long-term debt 60,000 Mortgage note payable Bonds payable Total long-term debt 10.000 140,000 $ 35,000 Equipment Less: Accumulated 150,000 14.000 21,000 depreciation, equipment Building 300,000 Less: Accumulated 8,000 183,600 40,000 260,000 Stockholders' Equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity depreciation, building Total fixed assets 341,000 191,600 $ 361,900 S 361,900 Total assets Print Done (Click the icon to view the selected income statement data.) nterest coverage ratio as of December 31, 2018. Round to two decimal formula and then enter the amounts to calculate the ratio. (Abbreviation Debt ratio i Data Table Selected Income Statement Data $ 289,100 Gross profit Operating expenses Earnings before interest and taxes Interest expense Income tax expense 138,500 150,600 16,500 25,900 Net income 108,200 Print Done

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