Dynamic Manufacturers Inc. reported the following information in its financial statements: Instructions
a) Calculate the company's debt to equity and times interest earned ratios for each year.
b) Determine if the change from 2020- 2021 is an improvement or deterioration.
c) If industry averages for debt to equity is 1.5:1 and times interest earned is 6 times, are Dynamic ratios comparable?

Question

Dynamic Manufacturers Inc. reported the following information in its financial statements:  Instructions 
a) Calculate the company's debt to equity and times interest earned ratios for each year.
b) Determine if the change from 2020- 2021 is an improvement or deterioration.
c) If industry averages for debt to equity is 1.5:1 and times interest earned is 6 times, are Dynamic ratios comparable?

Quizplus · Accepted Answer

The Answer of Dynamic Manufacturers Inc. reported the following information in its financial statements:  Instructions 
a) Calculate the company's debt to equity and times interest earned ratios for each year.
b) Determine if the change from 2020- 2021 is an improvement or deterioration.
c) If industry averages for debt to equity is 1.5:1 and times interest earned is 6 times, are Dynamic ratios comparable?