a.Using the financial statements for GMT Enterprises for 2010 (given below),calculate the return on equity,the debt ratio,and the times interest earned ratio.
b.Suppose the industry average debt ratio is 50%.Give one reason why the debt ratio for GMT Enterprises may be considered favorable,and give one reason why the debt ratio for GMT Enterprises may be considered unfavorable.
GMT Enterprises
2010 Financial Statements
Definitions:
Suicide
Purposeful taking of one’s own life.
Diagnosis
The identification of the nature and cause of a certain phenomenon, often used in the context of determining a medical condition through examination and assessment.
Siblings
Brothers and sisters who share one or both parents in common, having a unique and enduring biological and emotional relationship.
Negative Symptoms
Refers to the absence or diminution of normal social and emotional responses in psychiatric conditions, such as schizophrenia.
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