Question: ABC Co. financial data for 2020 & 2019 are given below: 2020 2019 Total Assets $885,000 $891,000 Total Liabilities 653,000 569,000 Cash 41,000 36,000 Interest-bearing

ABC Co. financial data for 2020 & 2019 are given below: 2020 2019 Total Assets $885,000 $891,000 Total Liabilities 653,000 569,000 Cash 41,000 36,000 Interest-bearing Debt 525,000 401,000 Net Income 167,000 122,000 Interest Expense 12,100 8,500 Tax Expense 18,300 15,800 Depreciation Expense 48,000 39,500 Calculate the debt to equity ratio and the interest coverage ratio using the select financial data provided above for 2019 & 2020. (Round answers to 2 decimal places, e.g. 15.25.) 2020 2019 Debt to Equity Ratio Interest Coverage Ratio times times Is ABC Corp.'s leverage improving or deteriorating? ABC Corp.'s leverage is Is its ability to service its long-term debt improving or deteriorating? Ability to service its long-term debt is
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