MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31 ASSETS Cash Accounts receivable Inventory Net plant and equipment Total assets $ 50,000 70,000 110,000 220,000 $450,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity $ 70,000 50,000 130,000 70,000 40,000 90,000 $450,000 MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses Depreciation Operating profit Interest expense Profit before taxes Taxes (30%) Net income $875,000 600,000 $275,000 30,000 55,000 $190,000 25,000 $ 165,000 49,500 $115,500 Refer to the tables above. Times interest earned for Megaframe Computer is