During the current year, Sevcik Company had pretax income from continuing operations of $19,200, which included interest

Question:

During the current year, Sevcik Company had pretax income from continuing operations of $19,200, which included interest expense of $4,000. At the end of the year, Sevcik Company had total assets of $119,000 and total liabilities of $41,700. Compute the debt ratio and interest coverage ratio of Sevcik Company for the current year.