Problem 2 (Total Point 20) LO-2: Perform and implement accounting analysis and financial analysis Atlantic's statement of Income is as follows (in million $): Net sales Other Income $658 8 666 418 Costs and expenses: Costs of product sold Selling, general, and administrative expenses Interest expenses 196 16 630 Income before income taxes and extraordinary charges Income taxes 36 18 Income before extraordinary charges Extraordinary charges 18 4 Net income $14 Note: Operating lease payment $200 million and preferred dividend total $50 million. Marginal tax rate 50% Required: a) Compute the times-interest earned and give the interpretation. (10%) b) Compute the fixed charge coverage and give the interpretation. (10%)