Trooper Corporation Reports the Following Amounts in Their 2017 Financial

question 177

Essay

Trooper Corporation reports the following amounts in their 2017 financial statements: $\begin{array}{lc}& \underline{\text { At December 31,2017}}& \underline{\text { For the Year 2017}}\\\text { Total assets } & \$ 2,000,000 \\\text { Total liabilities } & 1,310,000 \\\text { Total stockholders' equity } & ?\\\text { Interest expense } && \$ 25,000 \\\text { Income tax expense } && 130,000 \\\text { Net income }& & 150,000\end{array}$ Instructions
(a) Compute the December 31 2017 balance in stockholders' equity.
(b) Compute the debt to assets ratio at December 31 2017.
(c) Compute times interest earned for 2017.

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Definitions:

Mature Taiga

A biome characterized by dense forests of conifers in the northern regions that have reached a mature ecological stage with complex ecosystems.

Mature Tropical Rain Forest

A type of forest found in the tropics characterized by high levels of rainfall, biodiversity, and old, fully developed trees.

Low-pressure Air Mass

A region of the atmosphere where the air pressure is lower than surrounding areas, often resulting in cloudy weather and precipitation.

Temperate Deciduous Forests

Forests located in temperate zones featuring trees that lose their leaves seasonally and are adapted to handle cold winters and warm summers.