(Computation of a hospital's debt service coverage)

The following information is extracted from Beta Hospital's financial statements:

Required: Compute Beta's debt service coverage and times interest earned.

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Total revenues, gains, and other support Operating expenses Depreciation and amortization Interest on long-term borrowings Provision for bad debts Operating income Investment income Excess of revenues over expenses Principal payment on debt $62,490,000 $78,458,000 3,765,000 2,200,000 3,000,000 71,455,000 7,003,000 2,000,000 $ 9,003,000 $ 3,000,000