Royal Dunes Company Is a Retailer of Specialty Beachwear

Essay

Royal Dunes Company is a retailer of specialty beachwear. During 2020, the company expanded its retail business by adding 30 new retail stores. The following information is obtained from the comparative financial statements included in the company's 2020 Form 10-K (all amounts in $ thousands). Using the information provided, address the following questions for both 2020 and 2019:
A)What is the debt-to-equity ratio?
B)What is the times interest earned ratio?
C)What is the long-term debt-to-equity ratio, assuming that there is no current portion of long-term debt?
D)What is the long-term debt-to-total assets ratio, assuming that there is no current portion of long-term debt?
E)What is the debt-to-total assets ratio?
F)Comment briefly on the company's debt management position.