Blue Sky Drone Company has a total asset turnover ratio of 7.00, net annual sales of $30,000,000, and operating expenses of $22,500,000 (including depreciation and amortization). On its current balance sheet and income statement, respectively, it reported total debt of $1,982,143, on which it pays 7% interest on its outstanding debt.

To analyze a companys financial leverage situation, you need to measure the firms debt management ratios.

Based on the preceding information, what are the values for Blue Sky Drones debt management ratios? (Note: Round your answers to two decimal places.)

Ratio	Value
Debt ratio
Times-interest-earned ratio

Blue Sky Drone Company raises around ( ____ )from creditors for each dollar of equity.

a.$1.20

B. $0.86

C. $46.25

D. $1.03

Influenced by a firms ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to give loans to companies with (High/Low) times-interest-earned ratios (TIE). Pick one.