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Iberian Ham Inc. financial statements are presented in the table below. Based on the information in the table, calculate the firm s Interest Coverage ratio

Iberian Ham Inc. financial statements are presented in the table below.
Based on the information in the table, calculate the firms Interest Coverage ratio (also called Times Interest Earned).
Round the answers to two decimal places.
Balance Sheet December 31,20XX
Cash and marketable securities $100,000 Accounts payable $200,000
Accounts receivable $300,000 Notes payable $50,000
Inventories $500,000 Accrued expenses $60,000
Prepaid expenses $10,000 Total current liabilities $310,000
Total current assets $910,000 Long-term debt $300,000
Gross fixed assets $1,600,000 Par value and paid-in-capital $200,000
Less: accumulated depreciation $400,000 Retained Earnings $1,300,000
Net fixed assets $1,200,000 Common Equity 1,500,000
Total assets $2,110,000 Total liabilities and owners equity $2,110,000
Income Statement, Year of 20XX
Net sales (all credit) $4,000,000.00
Less: Cost of goods sold $2,800,000.00
Selling and administrative expenses $300,000.00
Depreciation expense $100,000.00
EBIT $800,000.00
Interest expense $30,000.00
Earnings before taxes $770,000.00
Income taxes $308,000.00
Net income $462,000.00

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