value: 2.00 points E10-10 Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio...
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value: 2.00 points E10-10 Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio [LO 10-5] At April 30, 2013, H. J. Klehr Incorporated reported the following amounts (in millions) in its financial statements 2013 2012 Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income $12,800 9,728 190 215 1,210 $12,150 8,991 190 130 1,010 Required 1. Compute the debt-to-assets ratio and times interest earned ratio for 2013 and 2012. (Round your answers to 2 decimal places.) 2013 2012 Debt-to-Assets Times Interest Earned Ratio 2-a. Creditors were providing a greater (or lesser) proportion of financing for Klehr Incorporated assets? O Greater O Lesser 2-b. Klehr Incorporated was more (or less) successful at covering its interest costs, as compared to 2012? O More O Less
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