Homework answers / question archive / Stover Corporation reports the following amounts in their 2011 financial statements:                                                                         At December 31, 2011           For the Year 2011               Total assets                                                     $2,000,000             Total liabilities                                                    1,140,000             Total equity                                                                ?             Interest expense                                                                                        $10,000             Income tax expense                                                                                 100,000             Net income                                                                                               150,000     Instructions (a)    Compute the December 31, 2011, amount of equity

Stover Corporation reports the following amounts in their 2011 financial statements:                                                                         At December 31, 2011           For the Year 2011               Total assets                                                     $2,000,000             Total liabilities                                                    1,140,000             Total equity                                                                ?             Interest expense                                                                                        $10,000             Income tax expense                                                                                 100,000             Net income                                                                                               150,000     Instructions (a)    Compute the December 31, 2011, amount of equity

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Stover Corporation reports the following amounts in their 2011 financial statements:

                                                                        At December 31, 2011           For the Year 2011

            Total assets                                                     $2,000,000

            Total liabilities                                                    1,140,000

            Total equity                                                                ?

            Interest expense                                                                                        $10,000

            Income tax expense                                                                                 100,000

            Net income                                                                                               150,000

Instructions

(a)    Compute the December 31, 2011, amount of equity.

(b)    Compute the debt to total assets ratio at December 31, 2011.

(c)    Compute times interest earned for 2011.