Use Stake Technology Inc.'s financial statements to compute the times interest earned ratio, and indicate whether the change from year to year is favourable or unfavourable. For your analysis, assume that all other things have remained constant. Apply your analysis in very general terms. All values should be accurate to at least two decimal places.

Stake Technology Inc.Income StatementFor Years Ended December 31, 2014, 2013, and 2012 201420132012Sales$886,100$937,900$1,007,400Cost of goods sold361,200310,900360,100Gross profit from sales524,900627,000647,300Operating expenses380,100347,300387,100Income from operations144,800279,700260,200Interest expense121,800186,550259,200Income before taxes23,00093,1501,000Income taxes4,80011,600100Net income$18,200$81,550$900

Stake Technology Inc.Balance SheetDecember 31, 2014, 2013, and 2012Assets201420132012Cash$67,900$69,000$74,900Short-term investments88,00097,00094,000Accounts receivable, net38,00038,60046,500Merchandise inventory58,70064,80077,000Prepaid expenses6,0007,6009,400Notes receivable, due in 20175,5006,5007,500Plant assets, net108,000103,000127,000Total assets$372,100$386,500$436,300Liabilities and Equity Accounts payable$18,000$21,900$23,100Salaries payable3,8004,0004,300Income taxes payable0050Long-term note payable secured by mortgage on plant assets18,00018,00018,000Share capital, 50,000 shares210,000210,000260,000Retained earnings122,300132,600130,850Total liabilities and equity$372,100$386,500$436,300

Ratio20142013AnalysisTimes interest earned ratio (select one)