Stockbridge Industries has a total asset turnover ratio of 3.6 times and net annual sales of 43.2 million. If stockbridge has $6 million of total debt on its balance sheet, what is the firms total debt ratio?
42.67%
33.33%
50%
16.67%
25%
Stockbridge pays 10% annual interest on its outstanding debt. If the firms total operating costs (including cost of goods sold and depreciation) equal $37 million, what is the firms times interest earned (TIE) ratio?
22 times
43 times
10.33 times
24.5 times
20.33 times