The following items have been extracted from the financial statements of Lorien Company for the

year 20X1.

Total liabilities

$700

Net income

50

Gross profit

400

EBIT (also called operating income)

220

Sales

1,000

Total assets

1,600

Income tax expense

40

Cost of goods sold

600

Note: This list does not include all of the items in Lorien's 20X1 financial statements. However,

the list does include all of the items you need to correctly answer the question below. What is the

value of Lorien Company's TIMES INTEREST EARNED ratio for 20X1?

1.69

3.08

3.38

3.00

1.29

5.50

4.40

2.69

plz explain!