H20 corporation is a wholesaler of scuba gear, During 2004, H2O expanded its retail business by adding over 50 dive shops. the following information is obtained from the comparative financial statements included in the companys 2004 annual report (all amounts are in thousands)

Insert Table Chart Text Shape Media Comment Collab Dec 31, 2004 $55,000 Total liabilities Dec 31, 2003 $24,000 22,000 46,000 Total stockholders' equity 35,000 90,000 Total assets FOR THE FISCAL YEARS ENDED Dec. 31 2004 2003 $175,000 Net Sales Gross Margin Depreciation expense Interest expense S123,000 $37.000 $ 6,000 $90,000 $20,000 11,000 25,000 34,000 Income tax expense 4,000 15,000 12,000 Net income 1. Using the information provided above, compute the following for 2004 and 2003: A Debt Ratio 2004 2003 B. Times interest earned ratio 2004 2003 2 Comment briefly on the company's solvency between 2003 and 2004 based on your ratio calculations in part 1 tv text Wedd Insert Jable Shipe Using the information provided above, compute the following for 2004 and 20039 A Debt Ratio 2004 2003 B Times interest earned ratio 2004 2003 2 Comment briefly on the company's solvency between 2003 and 2004 based on your ratio calculations in part 1. 3. Using the information provided above, compute the following for the years indicated below: A Profit Margin % 2004 B Return on Assets 2004