36) Classic Music, Inc. provided the following financial information for the year: $258,000 . Net income . Income tax expense $109,000 . $ 74,000 Interest expense 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