times interest earned = ebit/interest = 120,000/40,000= 3

debt ratio= debt/assets = total liabilities / assets = 689,535/ 1,161,082 = 0.5938

debt to equity ratio= total debt / total equity = 689,535/ 471,547 = 1.4623

Based on your answers in the prior question regarding Retail Products ratios, if the industry averages for the Times Interest Earned Debt and DebuEquity ratios were 4,5%, 50% and 110%, respectively, how would you assess Retail Products' long-term debt paying ability relative to its competitors