Sonic Corporation began business in 1953. In 2013 it was operating 3,522 drive-in hamburger restaurants throughout the United States and Mexico. The following data were taken from the company€™s 2013 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 2012 to 2013? Explain.

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Fiscal Years Ending Account Title August 31, 2013 August 31,2012 $140,722 Current assets Total assets Current liabilities Total liabilities Stockholders' equity Interest expense Income tax expense Net income 660,794 72,930 583,330 77,464 29,098 19,598 36,701 $107,151 680,760 80,516 621,513 59,247 31,608 21,877 36,085