Dave's Guitar Shop is thinking about adding an addition onto their building for more storage. Dave consults with a banker about applying for a loan. The loan officer asks for Dave's balance sheet to examine his overall debt levels. The financial statements show total assets of $100,000 and total liabilities of $25,000. Calculate the debt ratio: 11. Debt to Equity Ratio A company has $100,000 on a line of credit and a $500,000 mortgage on it's real estate. Shareholders have invested $1,200,000 into the company for stock. Calculate the debt to equity ratio. 12. Times-Interest Earned Ratio Tim's Tile Service is a construction company that is currently applying for a new loan to buy new equipment. The bank asks Tim for his financial statements as they consider lending to him. The income statement shows that he made $500,000 of income before interest expense. Tim's overall interest expense was $50,000. Calculate Tim's times-interest earned ratio