Vaughn Corporation began operations January 1, 2022. Given the below information for Vaughn Corporation:

Vaughn Corporation Statement of Financial Position December 31
		2023		2022
Cash		$15,300		$10,000
Accounts Receivable		23,900		18,400
Inventory		14,200		14,200
Total Current Assets		53,400		42,600
Property, Plant & Equipment		74,400		74,400
Total Assets		127,800		117,000
Accounts Payable		9,000		11,000
Deferred Revenue		15,700		21,100
Note Payable (due 2026)		43,900		43,900
Total Liabilities		68,600		76,000
Common Shares		20,000		20,000
Retained Earnings		39,200		21,000
Shareholders' Equity		59,200		41,000
Total Liabilities & Equity		127,800		117,000

Vaughn Corporation Statement of Income For the year ending December 31
		2023		2022
Sales		$236,100		$118,600
Cost of goods sold		152,000		80,400
Gross margin		84,100		38,200
Operating expenses		59,900		23,500
Interest expense		4,500		2,200
Income before income tax		19,700		12,500
Income tax expense		3,940		2,500
Net income		15,760		10,000

(a)

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Calculate debt-to-total assets ratios. (Round answers to 2 decimal places, e.g. 15.25%.)

		2023		2022
Debt-to-total assets ratios		%		%

Identify for each whether or not there has been a year-over-year improvement or deterioration.

The debt-to-total assets ratio has increaseddecreased year-over-year indicating a deteriorationan improvement.

Attempts: 1 of 1 used

(b)

Calculate times interest earned ratios. (Round answers to 2 decimal places, e.g. 15.25.)

		2023		2022
Times interest earned ratios		times		times

Identify for each whether or not there has been a year-over-year improvement or deterioration.

The times interest earned has increaseddecreased year-over-year indicating an improvementa deterioration.