Sales ($) 500 100 150 Cost of goods sold Salaries Utilities Rent 10 5 S Insurance Mortgage interest 20 Loan interest 10 Depreciation expense 18 Advertising expense 30 152 Taxable income Income taxes (35%) 53.2 Net income 98.8 The times interest earned ratio is 6.07 ? 6.6 5.07 16.2