Calculate the following ratios from the data given below:

1. Debt ratio

2. Debt service coverage multiples

3. Interest coverage

Balance Sheet 12/31/2014

Assets

Cash……………………………..$575,000

Short-term investments…………250,000

Accounts Receivable…………….964,000

Inventory…………………………650,000

Prepaid Expenses………………100,000

Total Current Assets………………$2,539,000

Autos and trucks…………………$65,000

Furniture and Fixtures……………327,000

Property, Plant, and Equipment

(Net of depreciation) ……………..4,480,000

Other long-term assets…………….710,000

Total Long-Term Assets…………..$5,582,000

Total Assets……………………….$8,121,000

Liabilities

Accounts Payable…………………$950,000

Notes Payable ………………….…520,000

Current Portion of LT Debt………637,000

Other Payables……………………60,000

Total Current Liabilities………….$2,167,000

Long-Term Debt

(Net of current portion) …………$3,110,000

Total Liabilities…………………$5,277,000

Equity

Capital Stock……………………140,000

Additional Paid-In Capital………650,000

Retained Earnings………………2,054,000

Total Shareholders’ Equity…………$2,844,000

Total Liabilities and Equity………$8,121,000

Income Statement January 1, 2014 to December 31, 2014

Net Sales……………………………$8,427,345

Cost of Goods Sold…………………4,638,987

Gross Profit…………………………$3,788,358

Operating Expenses…………………1,989,375

Interest Expense……………………346,000

Depreciation Expense……………….387,000

Total Operating Expenses…………..$2,722,375

EBIT………… ………… ………… (1,411,983)

EBITDA………… ………… ………(1,798,983)

Net Profit……………………………$1,065,983

Other Data

Shares Outstanding…………1,000,000

Market price per share…………$14.27

Earnings per share…………$1.07

Book value per share…………$2.84