Times-Interest-Earned Ratio EVANS and Sons, Inc. Income Statement (in millions) Net sales Cost of goods sold 2019 2018 $9,800 $9,300 (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