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Long-Term Solvency Ratios. Refer to the condensed income statement for CarMax, Inc., in Exercise 20 and to the companys balance sheet in Exercise 22. Required:

  1. Long-Term Solvency Ratios. Refer to the condensed income statement for CarMax, Inc., in Exercise 20 and to the companys balance sheet in Exercise 22.

    Required:

    Compute the following long-term solvency ratios for 2019, and provide a brief explanation after each ratio (round computations to two decimal places):

    1. Debt to assets
    2. Debt to equity
    3. Times interest earned

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