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Sidell Corporation's most recent balance sheet and income statement appear below:

	Year 2	Year 1
Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
Assets
Current assets:
Cash	$ 180	$ 100
Accounts receivable, net	220	200
Inventory	180	200
Prepaid expenses	20	20
Total current assets	600	520
Plant and equipment, net	660	720
Total assets	$ 1,260	$ 1,240
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 130	$ 130
Accrued liabilities	20	20
Notes payable, short term	100	90
Total current liabilities	250	240
Bonds payable	180	200
Total liabilities	430	440
Stockholders' equity:
Common stock, $1 par value	200	200
Additional paid-in capital	300	300
Retained earnings	330	300
Total stockholders' equity	830	800
Total liabilities & stockholders' equity	$ 1,260	$ 1,240

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$ 1,230
Cost of goods sold	780
Gross margin	450
Selling and administrative expense	235
Net operating income	215
Interest expense	29
Net income before taxes	186
Income taxes (30%)	56
Net income	$ 130

Required:

Compute the following for Year 2:

a. Times interest earned ratio.

b. Debt-to-equity ratio.

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