E$-$F:$11-24$

Computing times$-$interest$-$earned ratio

The following financial information was obtained from the year

ended $2025$ income statements for Franco Automotive, Inc. and

Quincy Automotive, Inc.:

Requirements

Compute the times$-$interest$-$earned ratio for each company.

Round to two decimals.

Which company was better able to cover its interest

expense?

Requirement $1$

Requirement $2$

Franco Automotive is better able to cover its interest expense.