Refer the following table. Focus Metals Inc. Comparative Balance Sheet Information November 30 (millions of $) 2017 Cash $ 30 Accounts receivable (net) 442 Inventory 88 Plant and equipment (net) 2,826 Accounts payable 332 Long-term notes payable* 1,840 Common shares 440 Retained earnings 774 2016 $ 100 288 81 2,910 248 2,400 440 291 *90% of the plant and equipment are secured by long-term notes payable. Focus Metals Inc Income Statement For Year Ended November 30 (millions of $) 2017 Net sales $3,000 Cost of goods sold 1,042 2016 $2,202 832 $1,958 $1,370 Gross profit Operating expenses: Depreciation expense Other expenses $116 780 $116 647 Total operating expenses 896 763 Profit from operations Interest expense Income tax expense $1,062 180 $607 214 62 58 Profit $824 $331 Required: Calculate Focus Metals solvency ratios for 2016 and 2017. Use Exhibit 17.14. (Round the final answers to 2 decimal places.) 2017 2016 Ratio Debt ratio Equity ratio Pledged assets to secured liabilities Times interest earned times times Analysis Component: Identify whether the change in each ratio from 2016 to 2017 was favourable or unfavourable. Ratio Favourable! Unfavourable Debt ratio Equity ratio Pledged assets to secured liabilities Times interest earned