The Lancaster Corporations income statement is given below. LANCASTER CORPORATION Sales $ 265,000 Cost of goods sold 137,000 Gross profit $ 128,000 Fixed charges (other than interest) 25,100 Income before interest and taxes $ 102,900 Interest 19,100 Income before taxes $ 83,800 Taxes (35%) 29,330 Income after taxes $ 54,470 What is the times-interest-earned ratio?

Problem 3.23 (Algo) Debt utilization ratios [LO3-2] The Lancaster Corporation's income statement is given below. a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places