Use the following information to answer the questions: Assets Liabilities and Equity Cash 10,000 Accounts payable 20,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 6,000 Current liabilities 26,000 Inventory 24,000 Long-term debt 95,000 Current assets 42,000 Total liabilities 121,000 Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings 15,000 Net fixed assets 114,000 Equity 35,000 Total assets 156,000 Total liab. & equity 156,000 Line item Value Sales 77,000 - Costs 63,140 - Depreciation 2,000 = EBIT 11,860 - Interest 800 = Taxable income 11,060 - Taxes 3,650 = Net income 7,410

Part 1

What is the total debt ratio (including all liabilities)?

Part 2

What is the times-interest-earned ratio?