Choose one answer for each part:

Part $1$:

Times Interest Earned and Safe Leverage conclusion:

The firm has a sufficient level of interest coverage safety, and the level of safety is improving or unchanged.

The firm has a sufficient level of interest coverage safety, but the level of safety is declining.

The firm does not have a sufficient level of interest coverage safety, but level of safety is improving.

The firm does not have a sufficient level of interest coverage safety, and the level of safety is declining.

The firm has no interest expense, so interest coverage is not a problem.

Part $2$:

Times Interest Earned and Safe Leverage conclusion, trend:

The level of safety is improving due primarily to the improvement in Earnings $($EBI$).$

The level of safety is improving due primarily to the reduction in Interest Expense.

The level of safety is declining due primarily to the decline in Earnings $($EBIT$).$

The level of safety is declining due primarily to the increase in Interest Expense.

Not applicable $($The firm has no interest expense, or there is no change in leverag$).$