Sidell Corporation's most recent balance sheet and income statement appear below:

Tweedle Corporation's most recent balance sheet and income statement appear below:

Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
	Year 2	Year 1
Assets
Current assets:
Cash	$ 140	$ 130
Accounts receivable, net	200	210
Inventory	150	180
Prepaid expenses	20	20
Total current assets	510	540
Plant and equipment, net	950	910
Total assets	$ 1,460	$ 1,450
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 130	$ 150
Accrued liabilities	70	70
Notes payable, short term	70	60
Total current liabilities	270	280
Bonds payable	170	190
Total liabilities	440	470
Stockholders equity:
Common stock, $1 par value	200	200
Additional paid-in capital	320	320
Retained earnings	500	460
Total stockholders equity	1,020	980
Total liabilities & stockholders equity	$ 1,460	$ 1,450

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$ 1,190
Cost of goods sold	710
Gross margin	480
Selling and administrative expense	226
Net operating income	254
Interest expense	25
Net income before taxes	229
Income taxes (30%)	69
Net income	$ 160

The times interest earned ratio for Year 2 is closest to:

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$ 1,230
Cost of goods sold	780
Gross margin	450
Selling and administrative expense	235
Net operating income	215
Interest expense	29
Net income before taxes	186
Income taxes (30%)	56
Net income	$ 130

Required:

Compute the following for Year 2:

a. Times interest earned ratio.

b. Debt-to-equity ratio.