Question

The 2018 comparative balance sheet and income statement of Linderman Pet Supply, Inc., are provided. The company had no noncash investing and financing transactions during 2018.

Multiple Choice Questions (MCQs)
What was the company's net income for 2018?
(a) $22,000
(b) $30,800
(c) $35,100
(d) $44,500
What was the company's current ratio at the end of 2018?*
(a) 0.83
(b) 1.20
(c) 1.53
(d) 2.33
What was the company's debt-to-equity ratio at the end of 2018?
(a) 0.25
(b) 0.33
(c) 0.50
(d) 0.80
What was the company's times interest earned ratio at the end of 2018?
(a) 3.50
(b) 4.25
(c) 5.00
(d) 6.25

Answer 1

The necessary information to calculate the net income, current ratio, debt-to-equity ratio, and times interest earned ratio is not provided.

Step-by-step explanation:

To determine the net income for 2018, we need to look at the income statement. From the provided information, we do not have access to the income statement. Hence, we cannot calculate the company's net income for 2018.

To calculate the current ratio, we need to divide the company's current assets by its current liabilities. However, the balance sheet provided does not include information about current assets and current liabilities. Therefore, we cannot calculate the current ratio.

The debt-to-equity ratio can be calculated by dividing the company's total debt by its total equity. Again, the balance sheet provided does not include information about total debt and total equity. Hence, we cannot calculate the debt-to-equity ratio.

The times interest earned ratio can be calculated by dividing the company's earnings before interest and taxes (EBIT) by its interest expense. However, the income statement provided does not include information about EBIT and interest expense. Therefore, we cannot calculate the times interest earned ratio.