Using the financial statements provided in Exhibit 6, calculate the following financial ratios for 2018, 2019 and 2020 and write a brief analysis and interpretation of:

i) Debt-to total assets ratio

ii) Times-interest-earned ratio (note: take "finance expenses" to be interest charges and "income from operations" to be profit before interests and taxes)

EXHIBIT 6: ARITZIA FINANCIAL STATEMENTS INCOME STATEMENT 2020* 2019 2018 Net revenue Cost of goods sold Gross profit 980,589 600,199 380,390 874,296 531,383 342,913 743,267 447,776 295,491 Operating expenses Selling, general, and administration Stock-based compensation expense Income from operations Finance expense Other expense (income) Income (loss) before income taxes Income tax expenses (recovery) Net income (loss) 243,778 7,790 128,822 4,556 -2,185 215,297 11,540 116,076 4,821 -395 183,857 17,240 94,394 5,221 1,890 87,283 30,190 57,093 126,451 35,631 90,820 111,650 32,922 78,728 BALANCE SHEET 2020 2019 2018 Assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets 117,750 6,555 94,034 13,037 231,376 100,897 4,355 112,183 18,422 235,857 Property and equipment Intangible assets Goodwill Right-of-use assets Other assets 184,637 63,867 151,682 380,360 24,793 1,036,715 167,593 64,427 151,682 0 9,815 629,374 112,475 2,413 78,833 17,733 211,454 135,672 61,387 151,682 0 8,181 568,376 Total assets Liabilities Accounts payable and accrued liabilities Other current liabilities Total current liabilities Lease liabilities Long-term debt Other liabilities 62,736 27,875 90,611 67,292 38,435 105,727 57,715 96,128 153,843 447,087 74,740 28,980 704,650 332,065 1,036,715 Total liabilities Shareholders' equity Total liabilities and shareholder equity 0 74,624 89,830 255,065 374,309 629,374 0 99,460 77,488 282,675 285,701 568,376