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Dynamic Manufacturers Inc

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Dynamic Manufacturers Inc. reported the following information in its financial statements: Dynamic Manufacturers Inc. reported the following information in its financial statements:   Instructions  a) Calculate the company's debt to equity and times interest earned ratios for each year. b) Determine if the change from 2020- 2021 is an improvement or deterioration. c) If industry averages for debt to equity is 1.5:1 and times interest earned is 6 times, are Dynamic ratios comparable? Instructions
a) Calculate the company's debt to equity and times interest earned ratios for each year.
b) Determine if the change from 2020- 2021 is an improvement or deterioration.
c) If industry averages for debt to equity is 1.5:1 and times interest earned is 6 times, are Dynamic ratios comparable?

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Definitions:

Maximize Profit

The economic goal of efficiently allocating resources in production to achieve the highest possible return or profit.

Start-up Firms

New business ventures that are in the early stages of operation, often characterized by innovative products or services and high growth potential.

United States

A country located in North America, comprised of 50 states, a federal district, five major self-governing territories, and various possessions.

Bankrupt

A legal situation in which an individual or firm finds that it cannot make timely interest payments on money it has borrowed. In such cases, a bankruptcy judge can order the individual or firm to liquidate (turn into cash) its assets in order to pay lenders at least some portion of the amount they are owed.

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