The income statement for Utah Communications follows. Assume Utah Communications signed a 120-day, 12 % $ 4,000 note on June 1, 2016, and that this was the only note payable for the company..)

Requirement 1. Fill in the missing information for

Utah's year ended July 31,2016, income statement. (Use a 360-day year for interest computations. Use a minus sign or parentheses to enter other expenses.)

		Utah Communications
		Income Statement
		Year Ended July 31, 2016
Sales Revenue			$33,000
Less:	Sales Returns and Allowances		(5,100)
	Sales Discounts		(2,900)
Net Sales Revenue				$25,000
Cost of Goods Sold				(9,000)
Gross Profit				16,000
Operating Expenses:
	Selling Expenses		730
	Administrative Expenses		1,500
	Total Operating Expenses			(2,230)
Operating Income				13,770
Other Revenues and (Expenses):
	Interest Expense
	Total Other Revenues and (Expenses)
Net Income before Income Tax Expense
Income Tax Expense				(2,740)
Net Income

Requirement 2. Compute the times-interest-earned ratio for the company.

Select the formula and enter the amounts to compute the times-interest-earned ratio. (Round your answer to two decimal places, X.XX.)

Times-interest-earned ratio

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