According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Lets see whether these changes are reflected in the income statement of IT Tech Incorporated for the year ended December 31, 2018.

	2018	2017
Sales Revenue	$ 119,000	$ 148,500
Cost of Goods Sold	69,500	79,100
Gross Profit	49,500	69,400
Selling, General, and Administrative Expenses	37,900	40,800
Interest Expense	690	570
Income before Income Tax Expense	10,910	28,030
Income Tax Expense	2,500	6,900
Net Income	$ 8,410	$ 21,130

Required:

1. Compute the times interest earned ratios for 2018 and 2017.Compute the times interest earned ratios for 2018 and 2017. (Round your answers to 1 decimal place.)

Year	Times Interest Earned
2017	16.8incorrect
2018	50.2selected answer incorrect