a. Compute the following for the year 2011 ONLY.

1. Times interest earned

2. Fixed Charge Coverage

3. Debt Ratio

4. Debt/Equity Ratio

5. Debt to tangible net worth

P7-4 Kaufman Company's balance sheet follows. Assets Current assets Cash Short-term investments-at cost (approximate market) Trade accounts receivable, less allowance of $1,590 Inventories-at lower of cost (average method) or market: Finished merchandise $ 13,445 5,239 88,337 113,879 47,036 160,915 8,221 276,157 Work in process, raw materials, and supplies Prepaid expenses Total current assets Other assets Receivables, advances, and other assets Intangibles Total other assets 4,473 2,324 6,797 Property, plant, and equipment: Land Buildings Machinery and equipment 5,981 78,908 162,425 247,314 Less allowances for depreciation property, plant, and equipment Total assets 106,067 141,247 $424,201 Net Liabilities and Shareholders' Equity Current liabilities: Notes payable Trade accounts payable Pension, interest, and other accruals Taxes, other than income taxes Income taxes Total current liabilities Long-term debt, 12% debentures Deferred income taxes Minority interest in subsidiaries Total liabilities Stockholders' equity: Serial preferred Common $5.25 par value Additional paid-in capital Retained earnings $ 2,817 23,720 33,219 4,736 3,409 67,901 86,235 8,768 12,075 174,979 9,154 33,540 3,506 203,712 249,912 690 249,222 $424,201 Less cost of common shares in treasury Total shareholders' equity Total liabilities and shareholders' equity P7-4 Kaufman Company's balance sheet follows. Assets Current assets Cash Short-term investments-at cost (approximate market) Trade accounts receivable, less allowance of $1,590 Inventories-at lower of cost (average method) or market: Finished merchandise $ 13,445 5,239 88,337 113,879 47,036 160,915 8,221 276,157 Work in process, raw materials, and supplies Prepaid expenses Total current assets Other assets Receivables, advances, and other assets Intangibles Total other assets 4,473 2,324 6,797 Property, plant, and equipment: Land Buildings Machinery and equipment 5,981 78,908 162,425 247,314 Less allowances for depreciation property, plant, and equipment Total assets 106,067 141,247 $424,201 Net Liabilities and Shareholders' Equity Current liabilities: Notes payable Trade accounts payable Pension, interest, and other accruals Taxes, other than income taxes Income taxes Total current liabilities Long-term debt, 12% debentures Deferred income taxes Minority interest in subsidiaries Total liabilities Stockholders' equity: Serial preferred Common $5.25 par value Additional paid-in capital Retained earnings $ 2,817 23,720 33,219 4,736 3,409 67,901 86,235 8,768 12,075 174,979 9,154 33,540 3,506 203,712 249,912 690 249,222 $424,201 Less cost of common shares in treasury Total shareholders' equity Total liabilities and shareholders' equity