The following information is available for Swing High Inc.:

Required Calculate the times interest earned ratio for 2020 and compare it to the industry average in Exhibit 17.11. Explain why it compares favourably or unfavourably.

Exhibit 17.11

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Swing High Inc. Income Statement For Year Ended November 30, 2020 Sales. $500 Cost of goods sold. 190 .... $310 Gross profit. .... Operating expenses: Depreciation expense. $ 20 Other expenses. Total operating expenses 200 220 $ 90 Profit from operations. Interest expense.. ..... Income tax expense 10 ...... $ 75 Profit. .......... Current ratio Quick ratio.. Accounts receivable turnover Days' sales uncollected. Inventory turnover. Days' sales in inventory. Total asset turnover Accounts payable turnover Debt ratio Equity ratio.. Pledged assets to secured liabilities. Times interest earned. Profit margin. Gross profit ratio. Return on total assets. Return on common shareholders' equity.. Book value per common share. Book value per preferred share. Earnings per share. Price-earnings per share. Dividend yield . 50 times 14% 18% 20% 32.7% $8.63 1.6:1 1.1:1 16 times 21 days 5 times 70 days 2.3 times $15.00 $1.79 18.2 $0.35 4 times 35% 65% 1.4:1