35) The times-interest-earned ratio is calculated as: A) Earnings before interest and tax divided by interest expense B) Profit before tax divided by interest expense C) Net income divided by interest expense D) Income tax expense plus interest expense divided by interest expense 36) Classic Music, Inc. provided the following financial information for the year: Net income . $258,000 Income tax expense $109,000 Interest expense $ 74,000 What is the firm's times-interest-earned ratio? (Round final answer to two decimals) A) 4.05 times B) 3.49 times C) 5.96 times D) 4.49 times 37) The times-interest-earned ratios of four companies are given below: Forge Corp. 8.9 . Fellow, Inc. 9.2 Stacy Corp. 6.7 . Bennett, Inc. 13.5 Which of these firms has the highest debt-paying ability? A) Forge Corp. B) Fellow, Inc. C) Stacy Corp. D) Bennett, Inc. 38) On March 1, Barker Services issued a 9% long-term notes payable for $23,000. It is payable over a 4-year term with $5,750 annual principal payments on March 1 of each year plus interest, beginning March 1 of next year. How will the notes payable be shown on the balance sheet at the end of this year? A) $23,000 shown as current liability only B) $5,750 shown as current liability and $23,000 shown as long-term liability C) $5,750 shown as current liability and $17,250 shown as long-term liability D) The entire $23,000 shown as long-term liability