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

	Year 2			Year 1
Total assets	$	1,239,000		$	1,198,000
Total liabilities	$	486,000		$	480,000
Total stockholders' equity	$	753,000		$	718,000
Net operating income (income before interest and taxes)	$	69,515
Interest expense	$	32,000

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

• 1.17

• 0.67

• 3.17

• 2.17