Stockbridge Industries has a total asset turnover ratio of 3.6 times and net annual sales of 43.2 million. If stockbridge has $6 million of total debt on its balance sheet, what is the firms total debt ratio?

42.67% 33.33% 50% 16.67% 25%

Stockbridge pays 10% annual interest on its outstanding debt. If the firms total operating costs (including cost of goods sold and depreciation) equal $37 million, what is the firms times interest earned (TIE) ratio?

22 times 43 times 10.33 times 24.5 times 20.33 times