Income Statements

2013 2014

Net Sales $1,500,000 $1,800,000

Cost of Goods Sold 900,000 1,260,000

Gross Profit 600,000 540,000

Marketing 150,000 200,000

General & Administrative 150,000 200,000

Depreciation 53,000 60,000

EBIT 247,000 80,000

Interest 57,000 70,000

Earnings Before Taxes 190,000 10,000

Income Taxes 76,000 4,000

Net Income $114,000 $6,000

Balance Sheets

2013 2014

Cash $40,000 $10,000

Accounts Receivables 260,000 360,000

Inventories 500,000 600,000

Total Current Assets 800,000 970,000

Fixed Assets, Net 400,000 500,000

Total Assets $1,200,000 $1,470,000

Accounts Payable $170,000 $180,000

Accruals 70,000 80,000

Bank Loan 90,000 184,000

Total Current Liabilities 330,000 444,000

Long-Term Debt 400,000 550,000

Common Stock 350,000 350,000

Retained Earnings 120,000 126,000

Total Liab. & Equity $1,200,000 $1,470,000

What is the change (in percentage) in the debt ratio from 2013 to 2014?