Cash Sanchez Corporation Selected Financial Information 12/31/X2 12/31/X1 $ 20,000 25,000 Accounts receivable (net) 100,000 110,000 Inventories 190,000 155,000 Total current assets 310,000 290,000 Long-term assets Current liabilities Long-term liabilities 230,000 210,000 200,000 190,000 40,000 50,000 Shareholders' equity 300,000 260,000 Net income $ 40,000 Interest expense 10,000 Income tax expense 20,000 The times interest earned ratio is: Multiple Choice 6.0 times 5.0 times 7.0 times 4.0 times