Use the following comparative income statements and balance sheets to complete the required ratio analysis:

Comparative Income Statement For the Years Ended December 31, 20-C and 20-B
	20-C		20-B
Net Sales		$965,400		$1,028,600
Cost of goods sold		515,100		590,300
Gross profit		$450,300		$438,300
Operating expenses
Selling expenses		$136,000		$169,100
Administrative expenses		150,200		182,400
Interest expense		35,400		39,100
Total operating expenses		$321,600		$390,600
Income tax expense		45,500		18,200
Total expenses		$367,100		$408,800
Net income		$83,200		$29,500

Comparative Balance Sheet December 31, 20-C and 20-B
Assets	20-C		20-B
Cash		$50,100		$52,500
Accounts receivable (net)		59,800		101,500
Merchandise inventory		150,900		171,600
Property, plant, and equipment (net)		718,500		813,800
Total assets		$979,300		$1,139,400
Liabilities and Stockholders' Equity
Notes payable (due 6/30/-D)		$70,000		$70,000
Accounts payable		113,200		155,600
Bonds payable		162,000		285,000
Common stock, $10 par value		420,000		420,000
Retained earnings		214,100		208,800
Total liabilities and stockholders' equity		$979,300		$1,139,400

Additional information:

All sales are made on account. Balances of selected accounts for December 31, 20-A are accounts receivable (net), $73,800; merchandise inventory, $139,200; total assets, $906,900; common stockholders' equity, $527,200; and common shares outstanding, 42,000.

	20-C		20-B
Number of common shares		42,000		42,000
Dividends paid		$44,400		$49,000

Required:

Analyze for 20-B and 20-C the extent to which this corporation is being financed by debt using the (a) ratio of liabilities to stockholders' equity, and analyze its ability to meet its debt obligation using the (b) times interest earned ratio. Indicate whether there has been an improvement or not from 20-B to 20-C. Round all answers to two decimal places.

	20-C		20-B		Improvement?
a. Ratio of liabilities to stockholders' equity	fill in the blank 1	to 1	fill in the blank 2	to 1
b. Times interest earned ratio	fill in the blank 4	times	fill in the blank 5	times