12. Calculate the debt ratio, at April 30, 2016, and 2015,round to 2 decimal places.(2 points)

2016	2015

13. Calculate the debt/equity ratio at April 30, 2016, and 2015,round to 2 decimal places.

(2 points)

2016	2015

14. Based on the results of your analysis above, assess the company's overall leverage position. Assume the following industry averages for both years: (4 points)

debt ratio = .59 and debt/equity ratio = .95 Defend your answer.

r3 GENtam STORE. CONSOLIDATED STATEMENTS OF INCOME anthousands, except per share amounts) Yours ended April 30, 2016 2015 Total revenue S 122,086 7,767,216 7840,255 Cost of goods sold (exclusive ofdepreciation and amortization, shown below) 6,618,239 6,327.43 Gross profit IA39,785 1.222,016 operating expenses 960,424 857,297 Depreciation and amortization 170,937 156,111 131,160 Interest, net 40,173 41,225 39,915 Income before income taxes 706 282,025 193,644 Federal and state inoome taxes 122,724 101,397 66,824 Net income 225,982 S 80,628 26,820 Net income per common share 5.79 466 S 330 5.73 4.62 3.26 See accompanying Notes to Consolidated Financial Statements