The classified balance sheet and selected income statement data for Quinn, Inc., as of December 31 , 201 2, are presented next.

Selected Income Statement Data
Gross Profit ........................................................ $163,400
Operating Expenses ............................................ 135,600
Earnings Before Interest and Taxes .................... 27,800
Interest Expense ................................................. 18,700
Income Tax Expense ........................................... 2,900
Net Income ......................................................... 6,200

Requirements
1. C alculate Quinn€™s debt ratio and interest coverage ratio as of December 31 , 201 2. Round to two decimal places.
2. What percentage of Quinn€™s assets belong to the stockholders?
3. Would you be willing to extend credit to Quinn, Inc? Why or whynot?

Quinn, Inc Balance Sheet December 31, 2012 ASSETS LIABILITIES Current Assets Cash Accounts Receivable Supplies Prepaid Rent Current Liabilities: 10,000 Accounts Payable 3,000 Salaries Payable S1,500 2,700 300 500 Unearned Service Revenue 3 500 Note Payable Total Current Assets 17,000Total Current Liabilities 61,000 Fixed Assets: Land Equipment Less: Accumulated Long-Term Debt: Mortgage Note Payable Bonds Payable Total Long-Term Debt 25,000 148,000 173,000 60.000 S 55,000 Depreciation, Equipment5,000 50,000 Building STOCKHOLDERS EQUITY Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and 220,000 Less: Accumulated Total Fixed Assets Total Assets 30,000 61,000 91,000 Depreciation, Building 22,000 198.000 308,000 325.000 Stockholders Equity $325,000