Please show me how to work these problems Laptop Inc obtained their first loan for $250,000 with an 8% interest rate. Laptop Inc. estimates that they will have net income of $165,000. As a not for profit, they do not pay income taxes. The company has total stockholders’ equity of $425,000.
1. What is Laptop, Inc.’s times interest earned ratio?
2. What is Laptop Inc debt to equity ratio?