Refer to the financial statements ofKrispy Kreme in AppendixA to answer the following:

1. Compute times interest earned for the fiscal years ended 2003, 2002, and 2001. Comment on Krispy Kreme’s ability to cover its interest expense for this period.

2. What evidence can you identify as an indication that Krispy Kreme has temporary differences between income reported on its income statement and income reported on its tax return?

Roll On 3. Access Krispy Kreme’s financial statements for fiscal years ending after February 2, 2003, at its Website (KrispyKreme.com) or the SEC’s EDGAR database (www.SEC.gov). Compute its times interest earned for years ending after February 2, 2003, and compare your results to those in part 1.