1. Following is the statement of financial position for Kowalski Company in Warsaw, Poland, as of December 31, 2019 (currency in Polish zaty [z-wo-tee], z):

Non-current assets z 242,000 Equity z 107,000

Current assets 105,000 Non-current liabilities 160,000

________ Current liabilities 80,000

Total assets z 347,000 Total equity and liabilities z 347,000

In addition, Kowalski reported net income for 2019 of z 140,000, income tax

expense of z 28,000, and interest expense of z 9,000.

Instructions:

1. Compute the debt ratio for Kowalski for 2019. (10%)
2. Compute the times interest earned for Kowalski for 2019. (10%)

* Use zl if you have difficulty in typing in z.