The following information for Kirsten Corp. has been obtained from the company€™s 2008 and 2009 financial statements.

Required:
(a) Kirsten Corp. has applied for a $50 million long-term loan from Prosperous Bank. Cornell Manufacturing is considering purchasing 10,000 shares of Kirsten€™s common stock. Would Prosperous Bank or Cornell Manufacturing be more likely to be interested in evaluating Kirsten€™s financial leverage? Explain your choice.
(b) Compute Kirsten€™s long-term debt to equity ratio in 2008 and 2009. Did the company become more or less leveraged between the end of 2008 and the end of 2009?
(c) Compute Kirsten€™s times interest earned ratio in both 2008 and 2009.Did this ratio improve or deteriorate between the end of 2008 and the end of 2009? Explain.

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2008 2009 Total Assets Current Assets Total Stockholders' Equity Long-Term Debt Net Income Interest Expense Income Taxes Expense S1,218,302 $1,328,496 753,580 675,322 287,837 99,586 13,985 42,680 666,135 604,215 226,279 81,584 10,203 28,578