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Unformatted text preview: 8. Total asset turnover = sales/total assets=2,000,000/760,000=2.63x Liquidity Ratios – 9. Current Ratio = current assets/current liabilities=370,000/110,000=3x 10. Quick Ratio = current assets – inventory/current liabilities=370,000-180,000/110,000=190,… Debt Utilization Ratios – 11. Debt to total assets = total debt/total assets=280,000/760,000=36.84% 12. Times interest earned = income before interest and taxes/interest=300,000/20,000=15x 13. Fixed charge coverage = income before fixed charges and taxes/fixed charges=300,000+30,000=$330,000 30,000+20,000=$50,000 300,000/50,000=6x...
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This note was uploaded on 01/19/2011 for the course FIN 200 FIN 200 taught by Professor Smith during the Fall '10 term at University of Phoenix.
- Fall '10