The following ratios have been calculated for Wholesale Appliances, Inc. Analyze the capital structure and long-term solvency of Wholesale Appliances, Inc.

2015 2016

Debt ratio (%) 77.8 90.3

Long-term debt to total capital (%) 29.8 66.1

Times interest earned (times) (2.0) (2.8)

Cash interest coverage (times) 4.6 4.1

Fixed charge coverage (times) (0.4) (1.0)

Cash flow adequacy (times) 0.2 0.3