Rising Stars Academy provided the following information on its 2011 balance sheet and statement of cash flows:

Required:
1. Calculate the following ratios for Rising Stars:
(a) Debt to equity,
(b) Debt to total assets,
(c) Long-term debt to equity,
(d) Times interest earned (accrual basis),
(e) Times interest earned (cash basis).
2. Interpret these results.

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Long-term debt 4,400 Total liabilities Total assets Total equity Operating income1,223 $ 398 559 432 1,015 266 150 Interest expense 8,972 Net income 38,775 nterest payments 29,803 Cash flows from operations Income tax expenses Income taxes paid