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)		$2,587,100		$2,162,100
Cost of goods sold		1,882,500		1,627,400
Gross profit		$704,600		$534,700
Operating expenses		317,200		224,900
Other expense (interest)		24,200		24,200
Income tax expense		174,300		107,100
Net income		$188,900		$178,500

Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1
	20-2		20-1
Cash		$253,100		$241,800
Government notes		246,000		246,000
Accounts receivable (net)		908,900		799,900
Merchandise inventory		988,100		912,600
Supplies and prepayments		142,500		46,300
Land		108,600		108,600
Building (net)		329,400		389,500
Office equipment (net)		17,700		15,200
Total assets		$2,994,300		$2,759,900
Current liabilities (accounts payable)		$695,100		$534,400
Bonds payable		220,000		240,000
Total liabilities		$915,100		$774,400
Common stock ($10 par, 180,000 shares)		$1,800,000		$1,800,000
Retained earnings		279,200		185,500
Total stockholders' equity		$2,079,200		$1,985,500
Total liabilities and stockholders' equity		$2,994,300		$2,759,900

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