Seven Corporation reports the following amounts in their 2010 financial statements:
|
At December 31, 2010 |
For the Year 2010 |
|
|
Total assets |
$1,000,000 |
|
|
Total liabilities |
620,000 |
|
|
Total stockholders’ equity |
? |
|
|
Interest expense |
$ 7,000 |
|
|
Income tax expense |
100,000 |
|
|
Net income |
150,000 |
Instructions
(a) Compute the December 31, 2010, balance in stockholders’ equity.
(b) Compute the debt to total assets ratio at December 31, 2010.
(c) Compute times interest earned for 2010.