Use the information about Yoyodyne Corporation below to answer the following questions.

a. Shareholder equity increased by $63 million from 2018 to 2019. How much of this increase was due to net issuance of new shares of stock?

b. Compare the Times-Interest-Earned and Times-Burden-Covered for 2018 and 2019. The industry averages for these ratios are 4.2x and 3.7x. What concerns might a prospective lender to Yoyodyne have from this information.

c. Regarding the Times-Interest-Earned and Times-Burden-Covered ratios, which one is more relevant during normal economic times? Which is more relevant during a period of financial crisis? Explain your answers.

Yoyodyn Corporation Consolidated Balance Sheet Year-Ended December 31 (in $ millions) 2018 2019 Cash 58.5 63.6 Accounts Receivable 39.6 55.5 Inventory 45.9 51.9 Total Current Assets 144.0 171.0 Yoyodyn Corporation Consolidated Income Statement Year-Ended December 31 (in $ millions 2018 2019 Total Sales 578.3 610.1 Cost of Goods Sold 481.9 500.2 Depreciation 3.3 3.6 Gross Profit 93.1 106.3 Selling, General & Admin Expenses 39.0 40.5 Research & Development 22.8 24.6 Earnings Before Interest & Taxes 31.3 41.2 Interest Expense 15.8 25.1 Pretax Income 15.5 16.1 Taxes 5.3 5.5 Net Income 10.2 10.6 Dividends Paid 5.0 5.1 200.7 Net Property, Plant & Equip. Goodwill Other Long-Term Assets Total Long-Term Assets 239.1 60.0 63.0 362.1 42.0 242.7 Total Assets 386.7 533.1 Accounts Payable Short-Term Debt Current Long-Term Debt Total Current Liabilities 85.5 9.6 36.9 132.0 93.6 10.5 39.9 144.0 Price Per Share Shares outstanding (millions) $15.20 10.2 $16.80 14.6 Long-Term Debt Deferred Taxes Total Long-Term Liabilities Total Liabilities 168.9 22.2 191.1 239.7 22.8 262.5 323.1 406.5 Stockholders' Equity 63.6 126.6 Total Liabilities & Equity 386.70 533.1