According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment

fell $3\mathrm{.}8$ percent between January and December $2018.$ Let's see whether these changes are reflected in the income statement of

Challenger.com for the year ended December $31,2018.$

Required:

Compute the times interest earned ratios for $2018$ and $2017.$

Does Challenger generate sufficient net income in both years $($before taxes and interest$)$ to cover the cost of debt financing?

Complete this question by entering your answers in the tabs below.

Compute the times interest earned ratios for $2018$ and $2017.$

Note: Round your answers to $1$ decimal place.