Times-Interest-Earned Ratio EVANS and Sons, Inc. Income Statement (in millions) Current Year Previous Year Net sales $9,800 $9,300 Cost of goods sold (5,500) (5,200) Gross profit 4,300 4,100 Selling and administrative expenses (2,800) (2,700) Income from operations 1,500 1,400 Interest expense (300) (250) Income before income taxes 1,200 1,150 Income tax expense (220) (200) Net income $980 $950 EVANS and Sons, Inc. Balance Sheet (in millions) Current Year Previous Year Assets Current assets Cash and cash equivalents $100 $300 Accounts receivable 900 800 Inventory 500 650 Other current assets 400 250 Total current assets 1,900 2,000 Property, plant & equipment, net 2,600 2,500 Other assets 5,700 5,900 Total Assets $10,200 $10,400 Liabilities and Stockholders' Equity Current liabilities $3,000 $2,900 Long-term liabilities 5,000 5,400 Total liabilities 8,000 8,300 Stockholders' equity-common 2,200 2,100 Total Liabilities and Stockholders' Equity $10,200 $10,400 Calculate the times-interest-earned ratio for Evans & Sons, Inc., for each year. Round answers to two decimal places. Previous Year Answer 0.01 Current Year Answer 0.63