HEALTH and SAFETY (PTY) LTD (H&S) is a wholesaler of Personal Protective Equipment. At the Beginning of the year 2020, H&S expanded its retail business by adding over 50 shops in order to meet the demand for protective gear. The following information has been extracted from the comparative financial statements included in the company's 2019 annual report (all amounts are in thousands of Rands):

Dec. 31, 2019

Dec. 31, 2018

Total liabilities

R26 000

R18 000

Total shareholders' equity

34 000

38 000

Depreciation expense

R 2 000

R 6 000

Interest expense

3 400

3 200

Income tax expense

12 600

18 100

Net income / (profit)

6 000

15 000

Net cash provided by (used for) operations

41 000

(400)

Total dividends paid

2 000

12 000

Cash used to purchase plant assets

32 000

18 000

Payments on long-term debt

1 600

1 800

1) Using the information provided above, calculate the following for 2019 and 2018:

a. Debt-to-equity ratio (at each year-end) (2)

b. Times interests earned ratio (2)

2) Comment briefly on the company's solvency. (4)

3) What other ratios will help you assess the solvency?