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The following information comes from the balance sheets and income statements of the Rocket Company: As of or for the Year ended December 31 Current
The following information comes from the balance sheets and income statements of the Rocket Company:
As of or for the Year ended December 31 | |||||
Current Year | Prior Year | ||||
Cash | $ | 13,300 | $ | 12,600 | |
Accounts receivable | 20,300 | 24,600 | |||
Inventory | 34,600 | 31,500 | |||
Property and equipment | 125,000 | 122,000 | |||
Current liabilities | 36,200 | 38,700 | |||
Long-term liabilities | 66,000 | 63,000 | |||
Stockholders equity | 91,000 | 89,000 | |||
Net sales revenues | 379,000 | 328,000 | |||
Cost of goods sold | 239,500 | 236,000 | |||
Operating expenses | 93,000 | 88,000 | |||
Interest expense | 8,250 | 10,500 | |||
Income tax expense | 10,300 | 10,600 | |||
|
What is the times interest earned ratio for the current year?
0.9
4.4
3.4
5.6
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