Ratio Analysis Rising Stars Academy provided the following information on its 2018 financial statements:

\section*{Required:}
1. Calculate the following ratios for Rising Stars:

(a) total debt to total equity,

(b) total debt to total assets,

(c) total long-term debt to total equity,

(d) times interest earned (accrual basis), and

(e) times interest earned (cash basis). (Note: Round answers to three decimal places.)
2. CONCEPTUAL CONNECTION Interpret these results.
\section*{Exercise

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Long-term debt Total liabilities. Total assets $ 4,400 Interest expense $ 398 8,972 Net income 559 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1,015 Operating income 1,223 Income tax expense 266 Income tax paid 150