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Purple Panda Products Inc. has a total asset turnover ratio of 8 . 5 0 x , net annual sales of $ 4 0 million,

Purple Panda Products Inc. has a total asset turnover ratio of 8.50x, net annual sales of $40 million, and operating expenses of $18 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $1.75 million on which it pays a 7% interest rate.
To analyze a companys financial leverage situation, you need to measure the firms debt management ratios. Based on the preceding information, what are the values for Purple Pandas debt management ratios?
Debt ratio:
Times-interest-earned ratio:

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