Debt ratio, Ratio of Liabilities to Stockholders' Equity, and Times Interest Earned

Camper Company and McSead, Inc., are the two largest toy companies. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows:

Camper McSead

Current liabilities $$1,090,000$ $$2,515,000$

Long$-$term debt $587,0001,476,400$

Total liabilities $$1,677,000$ $$3,991,400$

Total stockholders' equity $3,354,0005,702,000$

Total liabilities and stockholders' equity $$5,031,000$ $$9,693,400$

The operating income and interest expense from the income statement for both companies were as follows:

Camper McSead

Income $($loss$)$ from operations before tax $$410,521\mathrm{.}1$ $$1,546,250$

Interest expense $31,900123,700$

a$.$ Determine the debt ratio for both companies. Round to one decimal place.

Camper fill in the blank $1$

$\%$

McSead fill in the blank $2$

$\%$

b$.$ Determine the ratio of liabilities to stockholders' equity for both companies. Enter your answers as decimal values rounded to one decimal place.

Camper fill in the blank $3$

McSead fill in the blank $4$

c$.$ Determine the times interest earned for both companies. Round to one decimal place.

Camper fill in the blank $5$

McSead fill in the blank $6$

d$.$ What conclusions can be drawn from these data as to the ability of these two companies to meet their interest obligations?

Earnings appear more than enough for both companies to make their required interest payments.