Question: Dollarama reported the following selected data (in millions): 2017 2016 Total assets $1,934.3 $1,863.5 Total liabilities 2,186.7 1,763.1 Profit 519.4 445.6 Income tax expense 196.3

Dollarama reported the following selected data (in millions):

2017 2016
Total assets $1,934.3 $1,863.5
Total liabilities 2,186.7 1,763.1
Profit 519.4 445.6
Income tax expense 196.3 166.8
Interest expense 39.9 33.0

(a) Calculate the debt to total assets and interest coverage ratios for 2017 and 2016. Did Dollaramas solvency improve, worsen, or remain unchanged in 2017? (Round answers to 1 decimal place, e.g. 52.2 or 52.2%.)

2017 2016
Debt to total assets % %
Interest coverage times times

The Dollaramas solvency has improvedremained unchangedhas deteriorated.

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