Deep Purple Products presented the following financial information: December 31 Cash Year 2 $ 11,750 Year 1 $ 11,200 Accounts receivable 14,350 12,450 Inventory 21,150 21,000 Equipment 88,600 84,250 Accumulated depreciation (22,800) (21,250) Total assets $113,050 $107,650 Accounts payable $ 13,650 $ 18,950 Dividends payable 6,150 7,950 Salaries payable 2,300 1,300 Income taxes payable 7,000 6,800 Long-term notes payable 21,500 21,000 Common stock 32,050 24,850 Retained earnings 30,400 26,800 Total liabilities & equity $113,050 $107,650 Deep Purple Products operating income for Year 2 totaled $6,500. Net income totaled $3,200 and interest expense was $429. Evaluate the financial risk of Deep Purple Products for Year 2 using: the Long-term Debt to Equity ratio the Interest Coverage ratio Based on the ratios, indicate whether you believe that a bank would find this company to be a lending risk.