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In: AccountingUse the following financial information for Questions 1-4below: From the income statement:Depreciation expense...Use the following financial information for Questions 1-4below: From the income statement:Depreciation expenseInterest expense$170,00025,000Income taxNet income29,000148,000From the balance sheet:Current liabilities$95,000Long-term debt825,000Deferred income taxes 85,000Total Liabilities$1,005,000Preferred stock8,000Common stock276,000Premium on common stock163,000Retained earnings678,000Total Stockholders’ Equity$1,125,000Total Liabilities & Stockholders’ Equity$2,130,0001. What is the Times Interest Earned ratio? _________ /_______ = ___________2. What is the Debt/Assets (Debt)ratio? ________________ /___________ =__________3. What is the Debt*/Equity ratio? ________________ /___________= __________*Use Long-term debt4. Consider the additional information for the aboveanalysis:Times Interest Earned: Compare the current year result above(better or worse) to each of the following:i) Company prior year result of7.0ii) Industry average: 5.0Interpret yourfindings: Are the results acceptable? Why?Debt /Equity ratio: Compare current year result above ( more orless risk) to each of the following:i) Company prior year result of0.8ii) Industry average: 0.6Interpret your findings: Are theresults acceptable? Why?