The financial statements of Midwest Tours are given below.
Midwest Tours Income Statement
Sales $
Cost of goods sold
Gross profit
Selling & administrative expenses
Operating profit
Interest expense
Income before tax
Tax expense
Net income $
Balance Sheet
Cash $ $
Accounts receivable
Inventory
Total current assets $ $
Fixed assets
Total assets $ $
Accounts Payable $ $
Bank loan
Total current liabilities $ $
Bond payable
Total liabilities $ $
Common stock shares $ $
Retained earnings
Total liabilities & equity $ $
Note: The common shares are trading in the stock market for $ each.
Refer to the financial statements of Midwest Tours. The firm's leverage ratio for is:
Multiple Choice
