E$10-10($Algo$)$ Calculating and Interpreting the Debt$-$to$-$Assets Ratlo and Times Interest Earned Ratio $[$LO

$10-5]$

At May $31,2019.$ Bailey$-$Reed Group reported the following amounts $($in millions$)$ in its financial statements:

Required:

Compute the debt$-$to$-$assets ratio and times interest earned ratio for $2019$ and $2018.$

$2-$a$.$ In $2019,$ were creditors providing a greater $($or lesser$)$ proportion of financing for Bailey$-$Reed's assets?

$2-$b$.$ In $2019,$ was Bailey$-$Reed more $($or less$)$ successful at covering its interest costs, as compared to $2018?$

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Compute the debt$-$to$-$assets ratio and times interest earned ratio for $2019$ and $2018.($Round your answers to $2$ decimal

places.$)$