AUsing the Financial Statements for IUP Enterprises for 2010 (Given

question 36

Essay

a.Using the financial statements for IUP 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 IUP Enterprises may be considered favorable,and give one reason why the debt ratio for IUP Enterprises may be considered unfavorable.
IUP Enterprises
2010 Financial Statements

Understand the scope and lifetime of variables based on their declaration.

Differentiate between actual and formal parameters in method calls.

Comprehend method signatures and the concept of method overloading.

Understand method declarations and method calls in Java.

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Definitions:

Business Cycles

The fluctuations in economic activity that an economy experiences over a period of time, characterized by periods of boom and recession.

Great Recession

A global economic downturn that occurred from late 2007 through 2009, marked by severe financial crises, including the collapse of the housing market in the United States.

Peak

The highest point between the end of an economic expansion and the start of a contraction in a business cycle.

Unemployment

The condition of being without a job while actively looking for employment and being willing to work.