Calculate financial leverage measures The following information was available for the year ended December 31, 2016:

Earnings before interest and taxes (operating income)	$120,000
Interest expense	20,000
Income tax expense	30,000
Net income	70,000
Total assets at year-end	400,000
Total liabilities at year-end	240,000

Required:

Calculate the debt ratio at December 31, 2016.

Calculate the debt/equity ratio at December 31, 2016.

Calculate the times interest earned for the year ended December 31, 2016.