The following information was available for the year ended December 31.2016:

Earnings before merest and taxes (operating income)........... $120.000

Interest expense......................................................................... 20.000

Income tax expense................................................................... 30.000

Net income................................................................................ 70.000

Total assets at year end........................................................... 400.000

Total liabilities at year end..................................................... 240,000

Required:

a. Calculate the debt ratio at December 31.2016.

b. Calculate the debt/equity ratio at December 31. 2016.

c. Calculate the times interest earned for the year ended December 31.2016.