Required:

1.

You decide first to assess the companys performance in terms of debt management and profitability. Compute the following for both this year and last year: (Round your intermediate calculations and final percentage answers to 1 decimal place. i.e., 0.123 should be considered as 12.3%. Round the rest of the intermediate calculations and final answers to 2 decimal places.)

a.	The times interest earned ratio.
b.	The debt-to-equity ratio.
c.	The gross margin percentage.
d.	The return on total assets. (Total assets at the beginning of last year were $13,090,000.)
e.	The return on equity. (Stockholders equity at the beginning of last year totaled $8,236,250. There has been no change in common stock over the last two years.)
f.	Is the companys financial leverage positive or negative?