Required information Exercise 9-24 (Algo) Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.] On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: During January 2024, the following transactions occur: January 1 Borrow $106,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,049 are required at the end of each month for 68 months. January 4 Receive $31,608 from customers on accounts receivable. January 10 Pay cash on accounts payable, $17,00. January 15 Pay cash for salaries, $29,500 January 30 Firework sales for the month total $196,200. The cost of the units sold is $115,500. January 31 Pay the first monthly installment of $2,049 related to the $106,000 borrowed on January 1. 7. Analyze the following for Freedom Fireworks: Requirement 1: a-1. Calculate the debt to equity ratio. a-2. If the average debt to equity ratio for the industry is 1 , is Freedom Fireworks more or less leveraged than other companies in the same industry? Requirement 2: b-1. Calculate the times interest earned ratio. b-2. If the average times interest earned ratio for the industry is 20 times, is the company more or less able to meet interest payments than other companies in the same industry? Requirement 3: c. Based on the ratios calculated in (a1.) and (b1.), would Freedom Fireworks be more likely to receive a higher or lower interest rate than the average borrowing rate in the industry? Complete this question by entering your answers in the tabs below. Calculate the debt to equity ratio