Analysis of Leverage

Based on the financial statements of Cowan Kitchen Counters, Inc., as shown below:

Cowan Kitchen Counters, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1
	20-2		20-1
Net Sales (all on account)		$2,563,000		$2,165,300
Cost of goods sold		1,850,400		1,620,500
Gross profit		$712,600		$544,800
Operating expenses		314,500		210,800
Other expense (interest)		24,200		24,200
Income tax expense		174,700		109,700
Net income		$199,200		$200,100

Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1
	20-2		20-1
Cash		$260,400		$241,200
Government notes		249,100		249,100
Accounts receivable (net)		901,300		795,100
Merchandise inventory		989,000		911,700
Supplies and prepayments		143,900		46,500
Land		105,300		105,300
Building (net)		330,100		388,400
Office equipment (net)		17,800		14,900
Total assets		$2,996,900		$2,752,200
Current liabilities (accounts payable)		$704,100		$536,500
Bonds payable		220,000		240,000
Total liabilities		$924,100		$776,500
Common stock ($10 par, 180,000 shares)		$1,800,000		$1,800,000
Retained earnings		272,800		175,700
Total stockholders' equity		$2,072,800		$1,975,700
Total liabilities and stockholders' equity		$2,996,900		$2,752,200

Compute the following leverage measures for 20-2 (round all calculations to two decimal places):

a. Debt-to-equity ratio		to 1
b. Times interest earned ratio (Bond interest is $24,200.)		times
c. Assets-to-equity ratio		to 1