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

Selected Income Statement Data
"Gross Profit …………………………….. $293,200
Operating Expenses ……….……………... 173,100
Earnings Before Interest and Taxes …...….. 120,100
Interest Expense …………………..…….… 17,500
Income Tax Expense ……………...……….. 27,400
Net Income ……………………..…………. 75,200"

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

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Shreveport Auto, Ino. Balance Sheet December 31, 2016 Current Assets: Current Liabilities: $ 6,600 Accounts Payable 3,900 Salaries Payable $ 7,400 2,000 8,700 21,000 39,100 Cash Accounts Receivable Supplies Prepaid Rent Total Current Assets 400 Unearned Service Revenue 9,000 Note Payable 19,900 Total Current Liabilities Fixed Assets: Land Equipment Less Accumulated Long-Term Debt: Mortgage Note Payable Bonds Payable Total Long-Term Debt 70,000 28,000 150,000 178,000 $ 38,000 Depreciation, Equipment| 9,000 29,000 Stockholders' Equity: Common Stock 22,000 14,800 36,800 Building Less Accumulated Depreciation, Building Total Fixed Assets 225,000 Retained Earnings Total Stockholders' Equity Total Liabilities and 90,000 135,000 234,000 $253,900 Stockholders' Equity Total Assets $253,900