Help Leverage Ratlos sed Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any new common or preferred stock during the year. A total of 600,000 shares of common stock were outstanding. The Interest rate on the bond payable was 14%, the income tax rate was 40%, and the dividend per shore of common stock was $0.75. The market value of the company's common stock at the end of the year was $26. All of the company's sales are on account. 2 Book ferences Heritage Antiquing Services Comparative Balance sheet (dollar in thousanda) This Last Year YORE Aneta Current sats Cash $1,000 $1,210 recounts receivable.net 9,000 6,500 Tnventory 12,000 10,600 Prepaid expenses 600 500 Total current assets 22.680 18,010 Property and equipment Land 9,000 9,000 Buildings and equipment, net 36,800 38.000 Total property and equipment 45,800 42,000 Total asset $68,480 565,810 Liabilities and Stockholders' Equity Current liabilities Accounts payable $18.500 $17,400 Norued payables 900 700 Notes payable, short term 100 Total current liabilities 19,400 18.200 Long-term liabilities Bonde payabio 8,000 8,000 Total liabilities 27,400 26.200 Stockholders' equity Preferred stock 1.000 1,000 Common stock 2,000 2.000 Additional paid-in capital 4.000 4.000 Zotal pald-in capital 7.000 7.000 Retained earnings 34, OBO 32,610 Total stockholdera equity 41,080 39,610 rotal liabilities and stockholders' equity $ 68,480 $65.810 Ratlos 6 Saved Heritage Antiquing Services Comparative Income statement and Reconciliation (dollars in thousands) This Last Year Yenr Sales $ 66,000 $ 64,000 Cost of goods sold 43,000 42,000 Gross margin 23,000 22,000 Selling and administrative expenses: Selling expenses 11,500 11,000 Administrative expenses 7,400 7,000 Total selling and administrative expenses 18,900 18,000 Net operating income 4,100 4,000 Interest expense 800 800 Net income before taxes 3,300 3,200 Income taxes 1,320 1,280 Net income 1,980 1,920 Dividends to preferred stockholders 60 400 Net income remaining for common stockholders 1,920 1,520 Dividends to common stockholders 450 450 Net income added to retained earnings 1.470 1,070 Retained earnings, beginning of year 32,610 31,540 Retained earnings, end of year $ 34,080 $ 32,610 ces Required: Compute the following financial ratios for long-term creditors for this year: 1. Times interest earned ratio. (Round your answer to 1 decimal place.) Times interest earned ratio