(in millions) 2016 2015 Net sales 10,400 9,900 Cost of goods sold (5,500) (5,200) Gross profit 4,900 4,700 Selling and administrative expenses (2,800) (2,700) Income from operations 2,100 2,000 Interest expense (300) (250) Income before income taxes 1,800 1,750 Income tax expense (420) (400) Net income 1,380 1,350 Smith and Sons, Inc. Balance Sheet 2016 2015 (in millions) Assets Current assets Cash and cash equivalents 550 750 Accounts receivable 900 800 Inventory 850 1,000 Other current assets 400 250 Total current assets 2,700 2,800 Property, plant & equipment, net 2,250 2,150 Other assets 5,700 5,900 Total Assets 10,650 10,850 Liabilities and Stockholders' Equity Current liabilities 3,350 3,250 Long-term liabilities 5,000 5,400 Total liabilities 8,350 8,650 Stockholders' equity-common 2,300 2,200 Total Liabilities and Stockholders' Equity 10,650 10,850 Calculate the times-interest-earned ratio for Smith & Sons, Inc., for 2015 and 2016. Round answers to two decimal places. 2015 6.4 x 2016 7.33 X (in millions) 2016 2015 Net sales 10,500 10,000 Cost of goods sold (5,500) (5,200) Gross profit 5,000 4,800 Selling and administrative expenses (2,800) (2,700) Income from operations 2,200 2,100 Interest expense (300) (250) Income before income taxes 1,900 1,850 Income tax expense (420) (400) Net income 1,480 1,450 Smith and Sons, Inc. Balance Sheet 2016 2015 (in millions) Assets Current assets Cash and cash equivalents 650 850 Accounts receivable 900 800 Inventory 950 1,100 Other current assets 400 250 Total current assets 2,900 3,000 Property, plant & equipment, net 2,150 2,050 Other assets 5,700 5,900 Total Assets 10,750 10,950 Liabilities and Stockholders' Equity Current liabilities 3,450 3,350 Long-term liabilities 5,000 5,400 Total liabilities 8,450 8,750 Stockholders' equity-common 2,300 2,200 Total Liabilities and Stockholders' Equity 10,750 10,950 Calculate the quick ratio for Smith & Sons, Inc., for 2015 and 2016. Round answers to two decimal places. 2015 0.89 x 2016 7.33 X