The following financial information relates to Platinum City Ltd. (amounts in thousands):

Required

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

b. Comment on the solvency position of Platinum City Ltd.

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2018 2019 $7,200 2020 Income before depreciation, amortization, interest, and taxes Interest expense Cash Current liabilities (does not include any debt) Bank loan payable (all long-term) Shareholders' equity $6,900 $5,700 380 200 1,010 5,500 6,500 340 260 1,900 280 310 2,700 6,100 5,200 6,900 7,600