Required information Exerclse 9-24 (Algo) Complete the accountling cycle using long-term llabllity transactlons (LO9-2, 9-8) [The following information applles to the questions dispolayed below.] On January 1, 2024, the general ledger of Freedom Fireworks Includes the following account balances: During January 2024, the following transactions occur. January 1 Borrow $109,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,167 are required at the end of each nonth for 60 nonths. January 4 Receive $31,909 from customers on accounts receivable. January 10 Pay cash on accounts payable, $20,680 January 15 Pay cash for salaries, $29,800. January 30 Firework sales for the month total $200,400. The cost of the units sold is $117, 609 . January 31 Pay the first monthly installnent of $2,107 related to the $109, eae borrowed on January 1 . Exerclse 9.24 (Algo) Part 7 7. Analyze the following for Freedom Fireworks: Requirement 1 : a-1. Calculate the debt to equity ratio. a-2. If the average debt to equity ratio for the industry is 1 , is Freedom Fireworks more or less leveraged than other compantes in the same industry? Requirement 2 . b-1. Calculate the times interest earned ratio. b-2. If the average times interest earned ratlo for the Industry is 20 times, is the company more or less able to meet interest payments than other companles in the same industry? Requirement 3 : c. Based on the ratlos calculated in (a1.) and (b1.), would Freedom Flreworks be more likely to recelve a higher or lower interest rate than the average borrowing rate in the industry? Complete this question by entering your answers in the tabs below. Calculate the debt to equity ratio