Question 1 As a financial manager of Kedai Keluarga Sidek (KKS), you were asked to review the debt of several specialty retail stores. The following information was made available to you:

1. Adibas & Nibe Co.

Adibas & Nibe Cois a specialty retailer that operates stores and websites selling casual sportswear apparel.

2.Skull Brands, Inc.

We operate in the highly competitive specialty retail business.

3.GAP Inc.

We are a global specialty retailer offering clothing, accessories and personal care products.

Data Reviewed	Year 2021
	Adibas & Nibe Co.	Skull Brands, Inc	GAP Inc.
Times interest earned (times per year)	5.10	3.42	76.11
Debt ratio (%)	35.20	73.12	42.00

From the above information, you are required to:

a.Explain ONE (1) implication for each ratio. (4 Marks)

b.Comment on the times interest earned between the companies. (3 Marks)

c.Considering the debt ratio, comment on the debt position of these companies. (3 Marks)

(financial analysis subject)