Sal Gordon, owner of several dance studios, is wondering why her bookkeeper keeps complaining that it is difficult to pay the bills on time. Sal has looked at her income statement and can't figure out the problem. The following ratios for the company have been calculated.

	2016	2015
Debt ratio	72.00%	58.00%
Long-term debt to total capitalization	49.00%	24.00%
Times interest earned	6.9 times	3.4 times
Cash interest coverage	(2.6) times	1.5 times
Fixed charge coverage	6.0 times	3.2 times
Cash flow adequacy	(5.1) times	.4 times

Required: Write an explanation that will help Sal understand the challenges her firm is facing.