Comparative Balance Sheet At December 31, Year 2 and Year 1 Line Item Description Year 2 Year 1 Current assets: Cash and marketable securities $ 187,000 $ 158,000 Accounts receivable, net 154,000 128,000 Inventory 119,000 94,000 Prepaid expenses 48,000 45,000 Total current assets $ 508,000 $ 425,000 Noncurrent assets: Plant and equipment, net 1,375,000 1,301,000 Total assets $1,883,000 $1,726,000 Current liabilities: Accounts payable $ 122,000 $ 133,000 Accrued liabilities 53,000 72,000 Notes payable, short term 82,000 82,000 Total current liabilities $ 257,000 $ 287,000 Noncurrent liabilities: Bonds payable 269,000 282,000 Total liabilities $ 526,000 $ 569,000 Stockholders' equity: Preferred stock, $5 par, 5% $ 82,000 $ 82,000 Common stock, $5 par 214,000 214,000 Additional paid-in capitalcommon stock 198,000 198,000 Retained earnings 863,000 663,000 Total stockholders' equity $1,357,000 $1,157,000 Total liabilities and stockholders' equity $1,883,000 $1,726,000 Grange Company Income Statement For the Year Ended December 31, Year 2 Line Item Description Amount Sales (all on account) $2,225,000 Cost of goods sold 1,624,000 Gross margin $ 601,000 Operating expenses 342,000 Net operating income $ 259,000 Interest expense 28,000 Net income before taxes $ 231,000 Income taxes (31%) 71,610 Net income $ 159,390 Dividends during Year 2 totaled $128,000, of which $6,500 were preferred dividends. The market price of a share of common stock on December 31, Year 2, was $120. Compute the following leverage ratios for Year 2. Round answers to two decimal places. Line Item Description Answer A. Times-interest-earned ratio fill in the blank 1 times B. Debt ratio fill in the blank 2 1 C. Debt-to-equity ratio fill in the blank 3 1