The following items are from the financial statements of Tall Oak Company.

Compute Tall Oak€™s debt- to- equity ratio and interest coverage ratio for 2015 and 2016. Comment on Tall Oak€™s solvency and changes in solvency from 2015 to 2016.

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2016 $450,000 634,000 2015 Item Total labilities Total stockholders' equity $414,000 621,000 Net income Tax expense Interest expense Interest paid 63,000 18,900 13,500 12,100 61,000 18,300 12,420 13,660