P 7-3 The consolidated statement of earnings of Anonymous Corporation for the year ended December 31, 2011, is as follows: Net sales $1,550,010,000 Other income, net 10,898,000 1,560,908,000 Costs and expenses: Cost of goods sold 1,237,403,000 Depreciation and amortization 32,229,000 Selling, general, and administrative 178,850,000 Interest 37,646,000 1,486,128,000 Earnings from continuing operations before income taxes and equity earnings 74,780,000 Income taxes 37,394,000 Earnings from continuing operations before equity earnings 37,386,000 Equity in net earnings of unconsolidated subsidiaries and affiliated companies 27,749,000 Earnings from continuing operations 65,135,000 Earnings (losses) from discontinued operations, net of applicable income taxes 6,392,000 Net earnings $ 71,527,000 Required a. Compute the times interest earned for 2011. b. Compute the times interest earned for 2011, including the equity income in the coverage. c. What is the impact of including equity earnings from the coverage? Why should equity income be excluded from the times interest earned coverage? P 7-3 The consolidated statement of earnings of Anonymous Corporation for the year ended December 31, 2011, is as follows: Net sales $1,550,010,000 Other income, net 10,898,000 1,560,908,000 Costs and expenses: Cost of goods sold 1,237,403,000 Depreciation and amortization 32,229,000 Selling, general, and administrative 178,850,000 Interest 37,646,000 1,486,128,000 Earnings from continuing operations before income taxes and equity earnings 74,780,000 Income taxes 37,394,000 Earnings from continuing operations before equity earnings 37,386,000 Equity in net earnings of unconsolidated subsidiaries and affiliated companies 27,749,000 Earnings from continuing operations 65,135,000 Earnings (losses) from discontinued operations, net of applicable income taxes 6,392,000 Net earnings $ 71,527,000 Required a. Compute the times interest earned for 2011. b. Compute the times interest earned for 2011, including the equity income in the coverage. c. What is the impact of including equity earnings from the coverage? Why should equity income be excluded from the times interest earned coverage