The classified balance sheet and selected income statement data for Amarillo Auto Supply, Inc., as of December 31, 2016, are presented next.

Selected Income Statement Data
"Gross Profit …………………………………….. $275,600
Operating Expenses ………………….…………... 184,300
Earnings Before Interest and Taxes …...………….... 91,300
Interest Expense ………………………………….. 16,500
Income Tax Expense ……………………………... 17,100
Net Income ………………………………………. 57,700"

Requirements
1. Calculate Amarillo Auto Supply’s debt ratio and interest coverage ratio as of December 31, 2016. Round to two decimal places.
2. What percentage of Amarillo Auto Supply’s assets belong to the stockholders?
3. Would you be willing to extend credit to Amarillo Auto Supply? Why or why not?

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Amarillo Auto Supply, Inc. Balance Sheet December 31, 2016 ASSETS LIABILITIES Current Liabilities: Current Assets: $ 19,900 Accounts Payable Salaries Payable $ 5,400 Cash Accounts Receivable 12,100 2,100 Supplies Prepaid Rent Total Current Assets 600 Unearned Service Revenue 2,450 9,000 18,950 3,800 Note Payable S 36,400 Total Current Liabilities Long-Term Debt: Mortgage Note Payable Bonds Payable Total Long-Term Debt Fixed Assets: Land 60,000 28,000 $ 32,000 Equipment 120,000 148,000 Less: Accumulated Depreciation, Equipment | Building Less: Accumulated 11,000 21,000 275,000 STOCKHOLDERS' EQUITY Common Stock 24,000 75,000 200,000 Retained Earnings 281,000 Total Stockholders' Equity Total Liabilities and Depreciation, Building Total Fixed Assets 126,450 150,450 Stockholders' Equity $317,400 Total Assets $317,400