Consecutive five-year balance sheets and income statements of Laura Gibson Corporation are shown below.

Operating lease payments were as follows: 2009, $30,000; 2008, $27,000; 2007, $28,500; 2006, $30,000; 2005, $27,000 (dollars in thousands).

Required
a. Compute the following for the years ended December 31, 2005€“2009:
1. Times interest earned
2. Fixed charge coverage
3. Debt ratio
4. Debt/equity ratio
5. Debt to tangible net worth
b. Comment on the debt position and the trends indicated in the long-term debt-payingability.

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LAURA GIBSON CORPORATION Balance Sheets December 31, 2005 through December 31, 2009 (Dollars in thousa nds) Assets Current assets 2009 2008 2007 2006 2005 Cash Accounts receivable, net S 27,000 26,000 25,800 25,500 25,000 135,000 132,000 130,000 129,000 128,000 128,000 130,000 34,000 132,000 26,000 290,000 288,000 289,800 286,500 279,000 250,000 248,000 247,000 246,000 243,000 17,000 $560,000 S554,000 S553,800 $548.500 $537,000 es Total current assets Property, plant, and equipment, net Intangibles 20,000 18,000 15,000 Total assets Liabilities and stockholders' equity Current liabilities: Accounts payable Income taxes S 75,000 76,000 76,500 77,000 78,000 13.500 13,000 88,000 89,500 13.000 90,000 91,500 Total current liabilities 90,500 Long-term debt Stockholders' equity 170,000 68,000 165,000 164,000 262,000 302,000 296,500 298,300 294,500 183,500 Total liabilities and stockholders' equity $560,000 S554,000 S553,800 $548,500 $537,000 LAURA GIBSON CORPORATION Statement of Eamings For the Years Ended December 31, 2005-2009 (In thousands, except per share) Net sales Cost of goods sold Gross margin Selling and administrative ex pense Interest expense Earnings from continuing operations 2009 2008 2007 2006 2005 $920,000 $950,000 $910,000 $850,000 $800,000 552,000 270,000 248,000 50,000 147,000 23,000 640,000 280,000 156,000 17,000 648.000 302,000 157,000 16,000 624,000 286,000 154,000 15,000 80,000 14,500 S107,000 $129,000 $117,000 S105,500 78,000 before income taxes Income taxes Earnings from continuing operations Discontinued operating earnings (loss), net of taxes: 36.300 39,800 26,500 85.800 From operations On disposal (1,400) 900 1,300 Eamings (loss) from discontinued 2.300 130014004501600 78,600 operationn 68.400 87100 7 71.150 53.100 S 153 1.69 146 37 1.25 S1.50 S1.70 147 38 1.26 Net earnings Earnings (loss) per share Continuing operations Discontinued operations Net earnings per share