Milton, Inc. provides the following income statement for 2019: Net Sales $240,000 Cost of Goods Sold 110,000 Gross Profit $130,000 Operating Expenses: Selling Expenses 45,000 Administrative Expenses 12,000 Total Operating Expenses 57,000 Operating Income $73,000 Other Income and (Expenses): Loss on Sale of Capital Assets (25,000) Interest Expense (1,000) Total Other Income and (Expenses) (26,000) Income Before Income Taxes $47,000 Income Tax Expense 5,000 Net Income $42,000 Calculate the times-interest-earned ratio. (Round your answer to two decimal places.)

A.

73.00 times

B.

48.00 times

C.

42.00 times

D.

47.00 times

2

The financial statements of Trenton Office Supply include the following items:

	2019	2018
Cash	$47,500	$49,000
Short-term Investments	24,000	14,000
Net Accounts Receivable	102,000	100,000
Merchandise Inventory	127,000	126,000
Total Assets	525,000	546,000
Total Current Liabilities	253,000	238,000
Long-term Note Payable	55,000	50,000

What is the 2019 current ratio? (Round your answer to two decimal places.)

A.

0.57

B.

1.70

C.

1.19

D.

0.84