Refer to Matthias Medical's financial statements, presented in Exercise 12-8.
In Exercise 12-8

Required
Calculate the following leverage ratios for 2016.
a. Debt ratio
b. Debt-to-equity ratio
c. Times interest earned ratio

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Matthias Medical Comparative Balance Sheet As of December 31 2016 2015 Current assets 382,600 417,400 776,400 1,065,370 Accounts receivable, net Inventory Other current assets 381,300 2,546,270 8,678,000 $11,224,270 247,000 2,121,800 8,440,100 $10,561,900 Total current assets Property, plant,&equipment, net Liabilities and Stockholders Equity Current liabilities 3,162,800 2,000 3,892,600 3,702,600 6,865,400 Total liabilities 6,738,600 Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings 104,600 4,195,370 4,358,870 Total liabilities and stockholders' equity$11,224,270 103,800 3,660,600 3,823,300 $10,561,900 Total stockholders' equity Matthias Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 $10,177,200 5,611,600 4,565,600 2,840,200 1,725,400 2015 Sales revenue (all on account) Cost of goods sold $9,613,900 5,298,700 Operating expenses Net operating income nterest expense Net income before taxes Income taxes (30%) Net income 2,634,100 1,681,100 1,425,100 427,530 S 997,570 1,372,500 411,750 $ 960,750 Dividends paid Preferred dividends Common dividends Total dividends paid 433,350 462,800 Net income retained Retained earnings, beginning of year Retained earnings, end of year 413,000 442,450 518,300 3,142,300 $3,660,600 3,660,600 S4,195,370