Pharoah Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Pharoah Medical Comparative Balance Sheet As of December 31 2020 2019 Assets Current assets Cash Accounts receivable, net Inventory Other current assets Total current assets Property, plant, & equipment, net Total assets $386,000 1,057,000 750,000 381,350 2,574,350 8,641,505 $11,215,855 $417,400 776,400 681,050 247,050 2,121,900 8,440,160 $10,562,060 Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings $3,155,000 3,702,700 6,857,700 58,950 104,650 4,194,555 $2,846,100 3,892,650 6,738,750 59,000 103,900 3,660,410 Total stockholders' equity Total liabilities and stockholders' equity 4,358,155 $11,215,855 3,823,310 $10,562,060 Pharoah Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue (all on account) $10,177,300 $9,613,900 Cost of goods sold 5,612,400 5,298,800 Gross profit 4,564,900 4,315,100 Operating expenses 2,840,200 2,634,150 Net operating income 1,724,700 1,680,950 Interest expense 300,350 308,650 Net income before taxes 1,424,350 1,372,300 Income taxes (30%) 427,305 411,690 Net income $997,045 $960,610 Dividends paid Preferred dividends 29,500 29,450 Common dividends 433,400 413,050 Total dividends paid 462,900 442,500 Net income retained 534,145 518,110 Retained earnings, beginning of year 3,660,410 3,142,300 Net income before taxes 1,424,350 427,305 1,372,300 411,690 $997,045 $960,610 Income taxes (30%) Net income Dividends paid Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year 29,450 413,050 29,500 433,400 462,900 534,145 3,660,410 $4,194,555 442,500 518,110 3,142,300 $3,660,410 Calculate the following leverage ratios for 2020. (Round all answers to 2 decimal places, e.g. 2.55% or 2.55.) a. Debt ratio % b. Debt-to-equity ratio C. Times interest earned ratio times e Textbook and Media