Analyze the income statement for VWX Enterprises for the fiscal year ending December 31, 2023, to assess its financial health and profit distribution.

VWX Enterprises Income Statement	Year Ended December 31, 2023
Revenue
Sales Revenue	$1,300,000
Service Revenue	$100,000
Total Revenue	$1,400,000
Expenses
Cost of Goods Sold	$600,000
Selling and Administrative Expenses	$400,000
Depreciation Expense	$60,000
Interest Expense	$30,000
Income Tax Expense	$80,000
Total Expenses	$1,170,000
Net Income	$230,000
Dividends Paid	$100,000

Questions:

1. Calculate the retention ratio and discuss its significance in understanding the company's profit distribution strategy and future growth prospects.
2. Determine the interest coverage ratio and explain its importance in evaluating the company’s ability to meet its interest obligations.