Radio Heed, Incorporateds income statement and other financial information for the current year is presented below. Radio Heed, Incorporated Income Statement For the year ended December 31 Sales revenue $ 169,131 Cost of goods sold 66,360 Gross profit 102,771 Selling, general and administrative expenses 11,885 Operating income 90,886 Interest expense 3,147 Income before taxes 87,739 Income tax expense 3,614 Net income $ 84,125 Balance sheet information: Current assets $ 251,000 Noncurrent assets 502,000 Current liabilities 52,000 Long-term debt 104,000 Required: a. Perform vertical analysis of the income statement. b. Calculate the debt-to-assets ratio. c. Calculate the times interest earned ratio. Required:

a. Perform vertical analysis of the income statement.

Perform vertical analysis of the income statement. (Round your answers to the nearest whole percent.)

Radio Heed, Incorporated
Income Statement
For the year ended December 31
	Amount	Percent (%)
Sales revenue	$169,131
Cost of goods sold	66,360
Gross profit	102,771
Selling, general, and administrative expenses	11,885
Operating income	90,886
Interest expense	3,147
Income before taxes	87,739
Income tax expense	3,614
Net income	$84,125

b. Calculate the debt-to-assets ratio.

c. Calculate the times interest earned ratio.