The classified balance sheet and selected income statement data for Quinn, Inc., as of December 31 , 201 2, are presented next.

Selected Income Statement Data
Gross Profit ........................................................ $163,400
Operating Expenses ............................................ 135,600
Earnings Before Interest and Taxes .................... 27,800
Interest Expense ................................................. 18,700
Income Tax Expense ........................................... 2,900
Net Income ......................................................... 6,200

Requirements
1. C alculate Quinn€™s debt ratio and interest coverage ratio as of December 31 , 201 2. Round to two decimal places.
2. What percentage of Quinn€™s assets belong to the stockholders?
3. Would you be willing to extend credit to Quinn, Inc? Why or whynot?

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Quinn, Inc Balance Sheet December 31, 2012 ASSETS LIABILITIES Current Assets Cash Accounts Receivable Supplies Prepaid Rent Current Liabilities: 10,000 Accounts Payable 3,000 Salaries Payable S1,500 2,700 300 500 Unearned Service Revenue 3 500 Note Payable Total Current Assets 17,000Total Current Liabilities 61,000 Fixed Assets: Land Equipment Less: Accumulated Long-Term Debt: Mortgage Note Payable Bonds Payable Total Long-Term Debt 25,000 148,000 173,000 60.000 S 55,000 Depreciation, Equipment5,000 50,000 Building STOCKHOLDERS EQUITY Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and 220,000 Less: Accumulated Total Fixed Assets Total Assets 30,000 61,000 91,000 Depreciation, Building 22,000 198.000 308,000 325.000 Stockholders Equity $325,000