Hartzog Corporation's most recent balance sheet and income statement appear below:

Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars)
	Year 2	Year 1
Assets
Current assets:
Cash	$340	$320
Accounts receivable	600	580
Inventory	300	650
Prepaid expenses	40	40
Total current assets	1,280	1,590
Plant and equipment, net	1,220	1,230
Total assets	$2,500	$2,820
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$185	$340
Accrued liabilities	20	20
Notes payable, short term	80	260
Total current liabilities	285	620
Bonds payable	330	350
Total liabilities	$615	$970
Stockholders' equity:
Preferred stock, $100 par value, 5%	200	440
Common stock, $2 par value	910	910
Additional paid-in capital--common stock	290	290
Retained earnings	485	210
Total stockholders' equity	1,885	1,850
Total liabilites & stockholders' equity	$2,500	$2,820

Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars)
Sales (all on account)	$5,800
Cost of goods sold	3,480
Gross margin	2,320
Selling and administrative expense	1,717
Net operating income	603
Interest expense	110
Net income before taxes	493
Income taxes (30%)	148
Net income	$345

Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.

The times interest earned for Year 2 is closest to:

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A. 2.43

B. 4.48

C. 3.14

D. 5.48

2.)Hocking Corporation's comparative balance sheet appears below:

	Ending Balance	Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$69,600	$31,700
Accounts receivable	26,400	32,600
Inventory	69,400	67,600
Prepaid expenses	14,400	17,600
Total current assets	179,800	149,500
Property, plant and equipment	372,000	346,500
Loss accumulated depreciation	169,000	144,500
Net property, plant, and equipment	203,000	202,000
Total assets	$382,800	$351,500
Liabilities and Stockholder's Equity:
Current liabilities:
Accounts payable	$19,600	$15,000
Accrued liabilities	67,600	56,000
Income taxes payable	56,600	53,000
Total current liabilities	143,800	124,000
Bonds payable	85,000	87,000
Total liabilities	228,800	211,000
Stockholder's equity:
Common stock	34,500	30,000
Retained earnings	119,500	110,500
Total stockholder's equity	154,000	140,500
Total liabilities and stockholder's equity	$382,800	351,500

The company's net income (loss) for the year was $11,500 and its cash dividends were $2,500. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.

The company's net cash provided by operating activities is:

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A. $27,700

B. $65,200

C. $51,200

D. $63,400