Question Content Area

Financial statements for Grange Company are as follows:

Grange Company Comparative Balance Sheet At December 31, Year 2 and Year 1

Line Item Description	Year 2	Year 1
Current assets:
Cash and marketable securities	$ 181,000	$ 165,000
Accounts receivable, net	143,000	111,000
Inventory	115,000	108,000
Prepaid expenses	45,000	43,000
Total current assets	$ 484,000	$ 427,000
Noncurrent assets:
Plant and equipment, net	1,402,000	1,304,000
Total assets	$1,886,000	$1,731,000
Current liabilities:
Accounts payable	$ 141,000	$ 136,000
Accrued liabilities	63,000	83,000
Notes payable, short term	80,000	80,000
Total current liabilities	$ 284,000	$ 299,000
Noncurrent liabilities:
Bonds payable	259,000	295,000
Total liabilities	$ 543,000	$ 594,000
Stockholders' equity:
Preferred stock, $5 par, 5%	$ 80,000	$ 80,000
Common stock, $5 par	208,000	208,000
Additional paid-in capitalcommon stock	195,000	195,000
Retained earnings	860,000	654,000
Total stockholders' equity	$1,343,000	$1,137,000
Total liabilities and stockholders' equity	$1,886,000	$1,731,000

Grange Company Income Statement For the Year Ended December 31, Year 2

Line Item Description	Amount
Sales (all on account)	$2,565,000
Cost of goods sold	1,772,000
Gross margin	$ 793,000
Operating expenses	262,000
Net operating income	$ 531,000
Interest expense	42,000
Net income before taxes	$ 489,000
Income taxes (27%)	132,030
Net income	$ 356,970

Dividends during Year 2 totaled $135,000, of which $4,500 were preferred dividends.

The market price of a share of common stock on December 31, Year 2, was $85.

Compute the following leverage ratios for Year 2. Round answers to two decimal places.