Exercise 9-71 (Algorithmic) Ratio Analysis Rising Stars Academy provided the following information o
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Exercise 9-71 (Algorithmic) Ratio Analysis Rising Stars Academy provided the following information on its 2011 Balance Sheet and Statement of Cash Flows: Long-term debt $4,400 Interest expense 398 Total liabilities 9,842 Net income 559 Total assets Interest payments 432 38,775 Total equity 29,803 Cash flows from operations 1,015 Income tax expense 266 Income taxes paid 150 1. Calculate the following ratios for Rising Stars Academy. Round your answers to three decimal places a. Debt to equity .301 b. Debt to total assets .231 c. Long-term debt to equity d. Times interest earned (accrual basis) e. Times interest earned (cash basis) 2. Conceptual Connection: Interpret these results. The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank

## 1 Approved Answer

January 20, 2021A

Long Term Debt

4,400

F

Interest Expense

398

B

Total Liabilities

9,842

G

Net Income

559

C

Total Assets

38,775

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