r13 Assessment Seved Help Save & Exit S According to the producer price Index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2016. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2016. 2016 2015 Sales Revenue $117,000 $145,500 Cost of Goods Sold bed 69,500 78,300 Groan Profit 48,500 67,200 Selling, General, and Administrative Expenses Interest Expense 37,700 670 40,400 560 Income before Income Tax Expense Income Tax Expense 10,130 2,500 26,240 6,700 Net Income $ 7,630 $19,540 Required: 1. Compute the times interest earned ratios for 2016 and 2015. (Round your answers to 1 decimal place.) Times Interest Earned 2015 2016 2. Does Computer Tycoon generate sufficient net income in both years (before taxes and interest) to cover the cost of debt financing?