Yum! Brands, Inc., is a nationwide restaurant company whose brands include Taco Bell, KFC, and Pizza Hut. Selected balance sheet information is as follows for two comparative dates.

In addition, the income statement for these two periods showed the following income before tax and interest expense information:

a. Determine the ratio of total liabilities to total assets at the end of the two accounting periods. Round to two decimal places.
b. Determine the number of times interest charges were earned for the two fiscal years.
c. Interpret the change in the two ratios across the twoperiods.

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Dec. 25, 2004 Dec. 27, 2003 Total liabilities Capital stock Retained earnings $4,101 659 936 $4,500 916 204 For the Year Ended Interest expense Income before income tax Dec. 25, 2004 129 1026 Dec. 27, 2003 $173 886