(Answered) Calculate financial leverage measures the following

Accounting

Calculate financial leverage measures The following information was available for the year ended December 31, 2013:

Earnings before interest and taxes (operating income)	$60,000	Net income	$ 35,000
Earnings before interest and taxes (operating income)	$60,000	Total assets at year-end	200,000
Interest expense	10,000	Total liabilities at year-end	120,000
Income tax expense	15,000

Required:

a. Calculate the debt ratio at December 31, 2013.

b. Calculate the debt/equity ratio at December 31, 2013.

c. Calculate the times interest earned for the year ended December 31, 2013.

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