The following information was taken from the financial statements of TKO Company:

Required
Compute the debt to assets ratio, the debt to equity ratio, and times interest earned for both years.

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2012 2011 $125 Total assets Total liabilities Total equity Operating income Interest expense $200,000 75,000 125,000 35,000 7,000 ,000 75,000 50,000 30,000 7,500