Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

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Leverage Ratios
Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been given the company's financial statements for the 2 most recent years.
Refer to the information for Kepler Company above.
Required:
Note : Round all answers to two decimal places.
1. Compute the following for each year: (a) the times-interest-earned ratio and (b) the debt ratio
2. CONCEPTUAL CONNECTION Does Kepler have too much debt What other information would help in answering this question