Use the following financial statements to answer multiple choice questions 1 - 10. Round answers to 2 decimal places where needed.

AZTEC CORPORATION - BALANCE SHEETS

12/31/16 12/31/15

Cash $ 19,000 $ 20,000

Accts. Receivable 46,000 34,000

Inventory 122,000 96,000

Equipment (net of depreciation) 113,000 110,000

Total Assets $300,000 $260,000

Accts. Payable $ 75,000 $ 50,000

Long-Term Note Payable 0 15,000

Common Stock, $10 par 100,000 100,000

Retained Earnings 125,000 95,000

Total Liab & Owners Equity $300,000 $260,000

AZTEC CORP - INCOME STATEMENTS FOR THE YEARS ENDED DEC. 31

2016 2015

Sales $365,000 $360,000

Cost of Goods Sold 220,000 216,000

Gross Profit $145,000 $144,000

Operating Expenses 100,000 90,000

Interest Expense 13,000 12,000

Net Income $ 32,000 $ 42,000

ADDITIONAL INFORMATION:

1. Aztec has no preferred stock.

2. All sales are on credit.

3. The market price of Aztecs common stock was $23.50 on 12/31/16 and $20.00 on 12/31/15.

4. Aztec had 10,000 shares of common stock issued in 2015 and 2016.

5. What is Aztec's times-interest-earned ratio for 2016?

a. 28.07 c. 2.46

b. 12.15 d. 3.46