The 2014 Income Statement for Golden Company Is Shown Below

Essay

The 2014 income statement for Golden Company is shown below:
$\begin{array}{c} \text {GOLDEN COMPANY}\\ \text { Income Statements }\\ \text {For the Year Ended December 31,2014}\\ \begin{array}{|l|r|}\hline \text { Sales } & \$ 720,000 \\\hline \text { Cost of goods sold } & \underline{450,000} \\\hline \text { Gross profit } & \$ 270,000 \\\hline \text { Operating expense } & 168,500 \\\hline \text { Income from operations } & \$ 101,500 \\\hline \text { Interest expense } & \underline{22,300} \\\hline \text { Income before taxes } & \$ 79,200 \\\hline \text { Income taxes } & 28,000 \\\hline \text { Net income } & 51,200 \\\hline\end{array}\end{array}$
Calculate the times interest earned ratio for 2014.