Times Interest Earned

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 Prior Year

Interest expense $$60,000$ $$65,000$

Income before income tax expense $414,000318,500$

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

Current year fill in the blank $1$

Prior year fill in the blank $2$

b$.$ Although Caliber Company had enough earnings to pay interest in the prior year, the

in this ratio will be

by the debtholders.