The following financial information relates to Artscan Enterprises Inc. (amounts in thousands):

Required

a. Calculate the debt to equity, net debt as a percentage of total capitalization, and interest coverage ratios.

b. Comment on the solvency position of Artscan Enterprises.

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2020 2018 2019 Income before depreciation, amortization, interest, and taxes Interest expense Cash $1,650 $2,625 $3,300 150 340 435 50 225 115 Current liabilities (does not include any debt) Bank loan payable (all long-term) Shareholders' equity 600 1,200 800 2,000 4,250 4,000 5,500 4,500 7,250 Current liabilities (does not include any debt) Bank loan payable (all long-term) Shareholders' equity 600 1,200 800 2,000 4,250 4,000 5,500 4,500 7,250