Times-Interest-Earned Ratio Smith and Sons, Inc. Income Statement (in millions) 2016 2015 Net sales 10,150 9,650 Cost of goods sold (5,500) (5,200) Gross profit 4,650 4,450 Selling and administrative expenses (2,800) (2,700) Income from operations 1,850 1,750 Interest expense (300) (250) Income before income taxes 1,550 1,500 Income tax expense (420) (400) Net income 1,130 1,100 300 500 Smith and Sons, Inc. Balance Sheet (in millions) 2016 2015 Assets Current assets Cash and cash equivalents Accounts receivable 900 800 Inventory 600 750 Other current assets 400 250 Total current assets 2,200 2,300 Property, plant & equipment, net 2,500 2,400 Other assets 5,700 5,900 Total Assets 10,400 10,600 Liabilities and Stockholders' Equity Current liabilities 3,100 3,000 Long-term liabilities 5,000 5,400 Total liabilities 8,100 8,400 Stockholders' equity-common 2,300 2,200 Total Liabilities and Stockholders' Equity 10,400 10,600 Calculate the times-interest-earned ratio for Smith & Sons, Inc., for 2015 and 2016. Round answers to two decimal places. 2015 2016