The income statement for J and T Seafood appears below.

J AND T SEAFOOD

Income Statement

For the Year Ended December 31, 2008

Sales ...........................$400,000

Cost of goods sold ...................... 230,000

Gross profit ......................... 170,000

Expenses (including $16,000 interest and $24,000 income taxes) .... 100,000

Net income ......................... $ 70,000

Additional information:

1. The weighted average common shares outstanding in 2008 were 30,000 shares.

2. The market price of J and T Seafood stock was $13 in 2008.

3. Cash dividends of $23,000 were paid, $5,000 of which were to preferred stockholders.

Compute the times interest earned ratio for 2008.