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

	Year 2			Year 1
Total assets	$	1,251,000		$	1,207,000
Total liabilities	$	492,000		$	485,000
Total stockholders' equity	$	759,000		$	722,000
Net operating income (income before interest and taxes)	$	69,903
Interest expense	$	35,000

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

Multiple Choice

• 3.00

• 1.00

• 2.00

• 0.67