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Shown below are data from recent reports of two toy makers. Dollar amounts are stated in thousands. Toyco Pemco Total Assets $615,132 $2,780,500 Total Liabilities

Shown below are data from recent reports of two toy makers. Dollar amounts are stated in thousands.

Toyco Pemco
Total Assets $615,132 $2,780,500
Total Liabilities $349,792 $1,105,735
Interest Expense $28,026 $39,588
Operating Income $13,028 $304,672

a. Compute for each company (1) the debt ratio and (2) the interest coverage ratio. (Round the debt ratio to the nearest percent and the interest coverage ratio to two decimal places.)

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