Use Books-A-Million’s financial statements, which can be found in Appendix A at the back of the book, to answer the following questions:
1. What types of debt does Books-A-Million have? Where did you find this information?
2. Compute the debt-to-equity ratio for at least two consecutive years. What information do these ratios provide?
3. Does Books-A-Million mention any risks associated with its long-term debt? If so, where does it mention them?