1. Atlantic Fisheries has an EBIT of $3,280, depreciation of $1,850, cost of goods sold of $6,920, dividends paid of $750, interest expense of $860, and sales of $6,500. What is the taxable income?
2. From a cash flow position, which one of the following ratios best measures a firm's ability to pay the interest on its debts?

Multiple Choice

• Cash coverage ratio
• Quick ratio
• Debt-equity ratio
• Times interest earned ratio
• Cash ratio

3 - You have obtained the following information for Blue Bell Farms. The tax rate is 34 percent.

Cash$124

Net fixed assets2,498

Accrued expenses135

Inventory1,027

Long-term debt1,876

Sales3,850

Costs2,220

Accounts payable486

Depreciation321

Interest paid136

Accounts receivable518

Dividends paid281

What is the times interest earned ratio?