6...SunlandMedical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow.

SunlandMedical

Comparative Balance Sheet

As of December 31

2020 2019

Assets

Current assets

Cash $398,000 $417,450

Accounts receivable, net 1,099,000 776,450

Inventory 746,000 681,000

Other current assets 381,350 247,000

Total current assets 2,624,350 2,121,900

Property, plant, & equipment, net 8,645,005 8,440,010

Total assets $11,269,355 $10,561,910

Liabilities and Stockholders' Equity

Current liabilities $3,209,000 $2,846,050

Long-term debt 3,702,600 3,892,700

Total liabilities 6,911,600 6,738,750

Preferred stock, $5 par value 58,950 59,000

Common stock, $0.25 par value 104,650 103,850

Retained earnings 4,194,155 3,660,310

Total stockholders' equity 4,357,755 3,823,160

Total liabilities and stockholders' equity $11,269,355 $10,561,910

SunlandMedical

Comparative Income Statement and Statement of Retained Earnings

For the Year

2020 2019

Sales revenue (all on account) $10,177,250 $9,613,900

Cost of goods sold 5,612,700 5,298,700

Gross profit 4,564,550 4,315,200

Operating expenses 2,840,300 2,634,200

Net operating income 1,724,250 1,681,000

Interest expense 300,400 308,700

Net income before taxes 1,423,850 1,372,300

Income taxes (30%) 427,155 411,690

Net income $996,695 $960,610

Dividends paid

Preferred dividends 29,500 29,550

Common dividends 433,350 413,050

Total dividends paid 462,850 442,600

Net income retained 533,845 518,010

Retained earnings, beginning of year 3,660,310 3,142,300

Retained earnings, end of year $4,194,155 $3,660,310

Calculate the following leverage ratios for 2020.(Round all answers to 2 decimal places, e.g. 2.55% or 2.55.)

a.Debt ratio

b.Debt-to-equity ratio

c.Times interest earned ratio