Times-Interest-Earned Ratio, Debt Ratio, Debt-to-Equity Ratio

Woodall Inc. provided the following income statement for last year:

Sales	$12,800,000
Cost of goods sold	7,400,000
Gross margin	$5,400,000
Operating expenses	2,700,000
Operating income	$2,700,000
Interest expense	300,000
Income before taxes	$2,400,000
Income taxes	660,000
Net income	$1,740,000

Woodall's balance sheet as of December 31 last year showed total liabilities of $2,520,000, total equity of $9,530,000, and total assets of $12,050,000.

Required:

Round answers to two decimal places.

1. Calculate the times-interest-earned ratio. _____________times

2. Calculate the debt ratio.

3. Calculate the debt-to-equity ratio.