Question: Chapter 7 Problems: 7-1. Consider the following operating figures Net sales: $1,079,143 Cost and deductions: Cost of sales $792,755 Selling and administration $264,566 Interest expense,

Chapter 7 Problems: 7-1. Consider the following operating figures

Net sales: $1,079,143

Cost and deductions:

Cost of sales $792,755

Selling and administration $264,566

Interest expense, net $4,311

Income taxes $5,059

$1,066,691

$12,452

Note: Depreciation expense totals $40,000

Required

a. Compute the times interest earned.

b. Compute the cash basis times interest earned.

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