Deacon Corporation has provided the following financial data from its balance sheet and income statement:

	Year 2			Year 1
Total assets	$	1,228,000		$	1,192,000
Total liabilities	$	480,000		$	477,000
Total stockholders' equity	$	748,000		$	715,000
Net operating income (income before interest and taxes)	$	69,224
Interest expense	$	28,000

The companys times interest earned ratio for Year 2 is closest to:

• 3.47

• 0.67

• 2.47

• 1.47