E13-5 Computing a Commonly Used Solvency Ratio [LO 13-4,13-5] According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 8.1 percent between 2012 and 2013. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2013 2013 70,000 38,000 2012 $120,000 $150,000 79,500 0,000 70,500 41,000 575 28,925 7,000 $ 8,800 21,925 Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 700 11,300 2,500 Required: 1. Compute the times interest earned ratios for 2013 and 2012. (Round your answers to 1 decimal place.) Times Interest Earned 2012 2013