2005 564.9 - 360.5 204.4 Luther Corporation Consolidated Income Statement Year ended December 31 (in Smillions) 2006 Total sales 610.1 Cost of sales -500.2 Gross profit 109.9 Selling, general, and administrative expenses -40.5 Research and development -24.6 Depreciation and amortization -3.6 Operating income 41.2 Other income Earnings before interest and taxes (EBIT) 41.2 Interest income (expense) -25.1 Pretax income 16.1 Taxes -5.5 Net income 10.6 - 40.5 - 23.5 - 3.4 137 137 14.3 122.7 42.945 79.755 Price per share Sharing outstanding (millions) Stock options outstanding (millions) $16 10.2 0.3 $15 8.0 0.2 Stockholders' Equity Total Liabilities and Stockholders' Equity 126.6 533.1 63.6 386.7 Refer to the income statement above. Calculate times-interest- earned (TIE) in 2006 using EBITDA as a measure of earnings. The TIE is closest to: 1.50 O 1.78 O 1.64 01.12 O 0.56