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		$ 485,000		$ 427,550
Cost of goods sold		277,600		251,420
Interest expense		11,000		12,000
Net income before tax		68,550		53,980
Net income after tax		47,350		41,200
Total assets		319,700		295,800
Total liabilities		174,900		168,600
Total equity		144,800		127,200

Multiple Choice

• 5.3.

• 4.3.

• 6.2.

• 13.2.

• 7.2.