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The following information was available for the year ended December 31, 2016: Earnings before interest and taxes (operating income) $97,500 Interest expense 15,000 Income tax

The following information was available for the year ended December 31, 2016: Earnings before interest and taxes (operating income) $97,500 Interest expense 15,000 Income tax expense 22,500 Net income 60,000 Total assets at year-end 288,000 Total liabilities at year-end 216,000 Required: (a.) Calculate the debt ratio at December 31, 2016. (b.) Calculate the debt/equity ratio at December 31, 2016. (c.) Calculate the times interest earned for the year ended December 31, 2016.

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