e. Return on assets investment). TIMES MIRROR AND GLASS COMPANY Sales Less: Cost of goods sold Gross profit Less: Selling and administrative expense Less: Lease expense Operating profit Less: Interest expense Earnings before taxes Less: Taxes (30%) Earnings after taxes $126,000 93,000 $ 33,000 11,000 4,000 $ 18,000 3,000 $ 15,000 4,500 $ 10,500 "Equals income before interest and taxes, Debt utilization (LO3-2) 25. A firm has net income before interest and taxes of $193,000 and interest expense of $28,100. a. What is the times-interest-earned ratio? b. If the firm's lease payments are $48,500, what is the fixed charge coverage