4. Dynamic Manufacturers Inc. reported the following information in its financial statements: DYNAMIC MANFACTURERS INC. Statement of Financial Position June 30 Assets 2021 2020 Cash $ 32,000 $ 29,000 Accounts receivable. 7,500 5,500 Prepaid Insurance... 1,100 1.450 Inventory.... 220,000 175,000 Building... 145,000 155,000 Equipment 36,000 40,000 Total Assets... $441,600 $405,950 Liabilities and shareholders' equity Accounts Payable... $ 12,500 $ 14,500 Notes Payable 10,000 0 Bonds Payable 145,000 95,000 Long-Term Debt 116,000 175,000 Common shares 25,000 25,000 Retained earnings.... 133,100 96,450 Total liabilities and shareholders' equity $441,600 $405.950 Revenue $450,000 $300,000 Operating expenses 300,000 210,000 Profit from operations 150,000 90,000 Interest expense. 6,000 9,000 Income tax expense 36.000 20.250 Profit.. $108,000 $60.750 Instructions a) Calculate the company's debt to equity and times interest earned ratios for each year. b) Determine if the change from 2020-2021 is an improvement or deterioration. c) If industry averages for debt to equity is 1.5:1 and times interest earned is 6 times, are Dynamic ratios comparable? 2