Sonic Corporation began business in 1953. In 2010 it was operating 3,572 drive-in hamburger restaurants throughout the United States and Mexico. The following data were taken from the company’s 2010 annual report. All dollar amounts are in thousands.

Required
a. Calculate the EBIT for each year.
b. Calculate the times interest earned ratio for each year.
c. Calculate the current ratio and debt to assets ratio for each year.
d. Did the company’s level of financial risk increase or decrease from 2009 to 2010?Explain.

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Fiscal Years Ending Account Title August 31, 2010 August 31, 2009 Current assets Total assets Current liabilities Total liabilities Stockholders' equity Interest expense Income tax expense Net income $133,928 737 320 118,608 714,976 22,344 36,073 8,969 25,839 S 202,132 849,041 117,319 853,309 (4,268) 35,657 30,878 49,442