Ratio Analysis Rising Stars Academy provided the following information on its balance sheet and statement of cash flows: Long-term debt $4,400 Interest expense $398 Total liabilities 8,222 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1,015 Operating income 1,223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars Academy. Round your answers to three decimal places. a. Debt to equity 0.28 x b. Debt to total assets 0.15 c. Long-term debt to equity 0.15 x d. Times interest earned (accrual basis) 3.07 X e. Times interest earned (cash basis) 3.67 x The Debt to equity ratio focuses on long term solvency and considers the mix of total liabilities and total equity. The Debt to Total Assets ratio focuses on long term solvency and considers the mix of total debt and total assets. The Long-Term Debt to equity ratio focuses on long term solvency and considers the mix of debt and equity financing. The Times interest earned (accrual basis) focuses on the ability to make or cover the accrual basis interest expense. The Times interest earned (cash basis) focuses on the ability to make or cover the cash basis interest expense.