Question

Paxton Company provided the following income statement for last year: Sales                             &nbsp

Paxton Company provided the following income statement for last year:

Sales                                                                                      $ 87,021,000

Cost of goods sold                                                              (62,138,249)

Gross margin                                                                      $ 24,882,751

Operating expenses                                                           (19,371,601)

Operating income                                                               $ 5,511,150

Interest expense                                                                      (875,400)

Income before taxes                                                           $ 4,635,750

Income taxes                                                                          (1,854,300)

Net income                                                                             $ 2,781,450

Calculate the times-interest-earned ratio. (Note: Round the answer to one decimal place.)

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