REPORT PERCENTAGES TO TWO DECIMAL PLACES.

ACCEPTED FROMATS $16\mathrm{.}51\%$ OR $0\mathrm{.}1651,$ NOT $17\%$ OR $0\mathrm{.}17$ FTRN$$s Credit Agreement with the lenders on the $2051$ Notes relies on the maximum leverage ratio as a covenant to monitor the company's performance and financial health. The maximum leverage ratio is defined as a$)$ Debt and Leases Outstanding $($reported on the balance sheet$),$ divided by b$)$ EBITDA.

Per the Credit Agreement, the lenders define EBITDA in the standard form: Net income before taxes, interest expense, and depreciation and amortization. FTRN is in default on the loan if the ratio exceeds $3\mathrm{.}0.$

Required:

a$.$ Calculate the relevant EBITDA value used by lenders for the year ended January $31,2023($hint: you may need to use the Debt and Cash Flow tabs for accurate amounts to add back...and watch your signs!$)$:

b$.$ Calculate the relevant numerator of the Leverage Ratio:

c$.$ Calculate the Leverage Ratio for January $31,2023($use ENDING balance sheet amounts$).$