a. Compute the following for 2009 and 2008:
1. Times interest earned
2. Fixed charge coverage
3. Debt ratio
4. Debt/equity ratio
b. Compute the debt ratio for 2009, considering operating leases.
c. Give your opinion regarding the significance of considering operating leases in the debtratio.

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SCHOLASTIC CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in millions, except per share data) For fiscal years ended May 31, 2009 2008 2007 S1,849.3 868.8 790.1 S 2,159.1 1,035.9 832.0 S 1,870.6 871.4 759.3 Revenues Operating costs and expenses: Cost of goods sold (exclusive of depreciation) Selling, general, and administrative expenses 15.8 60.7 26.5 17.0 1,778.9 70.4 0.7 1.2 24.2 Bad debt expense Depreciation and amortization 8.6 62.2 7.0 11.1 61.4 14.3 Goodwll impairment charge Total operating costs and expenses Operating income Other income Interest income Interest expense (Loss) gain on investments Earnings from continuing operations 1,945.7 213.4 2.6 3.1 32.9 1,717.5 153.1 2.5 33.4 3.0 before income taxes Provision for income taxes Earnings from continuing operations Loss from discontinued operations 34.6 21.4 13.2 (27.5) 125.2 42.5 82.7 186.2 68.9 (134.5) (21.8) net of tax Net (loss) income S (14.3) S (17.2) S 60.9