Refer to the following selected financial information from Shakley's Incorporated. Compute the company's times interest earned for Year 2.

	Year 2		Year 1
Net sales		$ 482,500		$ 427,050
Cost of goods sold		277,100		250,920
Interest expense		10,500		11,500
Net income before tax		68,050		53,480
Net income after tax		46,850		40,700
Total assets		318,700		292,800
Total liabilities		177,400		168,100
Total equity		141,300		124,700

Multiple Choice

• 6.5.

• 13.5.

• 4.5.

• 7.5.

• 5.5.