Roberts, Inc.
Balance Sheet
December 31, 2018
	Current assets:				Current liabilities:
	Cash		$19,900		Accounts payable	$5,500
	Accounts receivable		8,400		Salaries payable	2,100
	Supplies		800		Unearned service revenue	16,100
	Prepaid rent		3,800		Note payable	5,000
	Total current assets		32,900		Total current liabilities	28,700
	Fixed assets:				Long-term debt:
	Land		40,000		Mortgage note payable	15,000
	Equipment	$36,000			Bonds payable	70,000
	Less: Accumulated				Total long-term debt	85,000
	depreciation, equipment	11,000	25,000
	Building	205,000			Stockholders' Equity:
	Less: Accumulated				Common stock	16,000
	depreciation, building	60,000	145,000		Retained earnings	113,200
	Total fixed assets		210,000		Total stockholders' equity	129,200
	Total assets		$242,900		Total liabilities and stockholders' equity	$242,900

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Selected Income Statement Data
Gross profit. . . . . . . . . . . . . . . . . . . . . . . .	$272,300
Operating expenses. . . . . . . . . . . . . . . . .	143,200
Earnings before interest and taxes. . . . . .	129,100
Interest expense. . . . . . . . . . . . . . . . . . . .	17,300
Income tax expense. . . . . . . . . . . . . . . . .	26,300
Net income. . . . . . . . . . . . . . . . . . . . . . . . .	85,500

1 Calculate Roberts, Inc.'s debt ratio and interest coverage ratio as of December 31,

2018.Round to two decimal places.

2What percentage of Roberts,Inc.'s assets belong to the stockholders?

Would you be willing to extend credit to Roberts,Inc.? Why or why not?