Refer to Practices 23-1 and 23-3. Compute times interest earned for Year 1, Year 2, and Year 3 for Company A.
Refer To 23-1
Company A reported the following income statement data for the most recent three years:

Prepare a common-size income statement for each year.
Refer To 23-3
Company A reported the following balance sheet data for the most recent three years:

Prepare the Assets section of a common-size balance sheet for each year.

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Year 3 Year 2 Year 1 Sales Cost of goods sold Operating expenses: (163,000) 144,000) (156,000) Marketing expense. R&D expense Administrative expense. .. (21,000) (21,000) (22,000) (14,000) (50,000)(48,000) (6,000) (45,000) Operating income. . Interest expense Income before income taxes. .. Income tax expense (6,000) (11,000) (7,000) (25,000) (8,000) (20,000) Net income... $ 63,000 20,000 $33,000 Year 3 Year 2 Year 1 $8,000 8,000 37,000 Cash.. 18.000 47,000 3°,000 62,000 92,000 60,000 123,000 $183,000 28,000 39,000 21,000 20,000 15,000 s 43,000 59,000 36,000 58.000 18,000 36,000 Current assets. . . 138,000 126,000 Total assets... $200,000 $218,000 Accounts payable. Current liabilities. Long term debt... 52.000 65.000 Total liabilities. Paid-in capital.. Retained earnings 19,000 5,000 $200,000 $218,000 19,000 70,000 $183,000 19,000 86,000 Total liabilities and equities...