11.4Calculate financial leverage measures The following information was available for the year ended December 31, 2016:Earnings before interest and taxes (operating income)$120,000Interest expense 20,000Income tax expense 30,000Net income   70,000Total assets at year-end 400,000Total liabilities at year-end 240,000Required:Calculate the debt ratio at December 31, 2016.Calculate the debt/equity ratio at December 31, 2016.Calculate the times interest earned for the year ended December 31, 2016.

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