The 2011 Income Statement for Golden Company Is Shown Below

Essay

The 2011 income statement for Golden Company is shown below:
Golden Compary
Income Statements
For the Year Ended December 31, 2011
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 720,000 \\\hline \text { Cost of goods sold } & 450,000 \\\hline \text { Gross profit } & \$ 270,000 \\\hline \text { Operating expense } & 168,500 \\\hline \text { Income from operations } & \$ 101,500 \\\hline \text { Interest expense } & 22,300 \\\hline \text { Income before taxes } & \$ 79,200 \\\hline \text { Income taxes } & 28,000 \\\hline \text { Net income } & 51,200\\\hline\end{array}$
Calculate the times interest earned ratio for 2011.