The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States:

Current Year Preceding Year

Interest expense $68,000 $75,000

Income before income tax 421,600 322,500

a- Determine the times interest earned ratio for the current and preceding years. Round to one decimal place.

b- Although Caliber Company had enough earnings to pay interest in the preceding year, the _______ in this ratio will be _______ by the debtholders.