Question

The following information comes from the balance sheets and income statements of Crosby Co.:

As of or for the Year ended December 31
	Current Year			Prior Year
Cash	$	14,000		$	14,000
Accounts receivable		21,000			26,000
Inventory		36,000			35,000
Property and equipment		132,000			129,000
Current liabilities		32,000			38,000
Long-term liabilities		73,000			70,000
Stockholders’ equity		98,000			96,000
Net sales revenues		400,000			335,000
Cost of goods sold		250,000			250,000
Operating expenses		100,000			95,000
Interest expense		10,200			14,000
Income tax expense		11,000			12,000

What is the times interest earned ratio for the current year?

Answer 1