The following information is available for Best Appliance Inc.:

Required Calculate the times interest earned ratio for 2014 and compare it to the industry average in Exhibit 18.11. Explain why it compares favorably or unfavourably.

1 There were 1 million $5, non-cumulative, preferred shares issued and outstanding; no new shares were issued during 2013 or 2014.
2 There were 25 million common shares issued and outstanding; no new shares were issued during 2013 or 2014.
3 There are no dividends in arrears. Dividends totaling $62 million were declared and paid during2014.

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Best Appliance Inc. Income Statement For Year Ended November 30, 2014 $500 190 $310 Gross profit Operating expenses 200 220 Income from operations Interest expense. 90 10 S 75 Delmar Corp. Comparative Balance Sheet Information November 30 (millions of $) Delmar Corp Income Statement For Year Ended November 30, 2014 (millions of $) 2014 2013 $500 190 S310 Cost of goods sold 46 80 30 20 95 15 320 Operating expenses: Prepaid rent Plant and equipment (net).... Accounts payable 200 other expenses.. Total operating expenses.. 40 220 S 90 10 S 80 Accrued liabilities 35 50 Income tax payable Preferred shares 50 50 100 231