E13-5 Computing a commonly Used Solvency Ratio (LO 13-4, LO 13-5) According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2016. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2016. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrat Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 2016 $100,000 64,000 44,000 36,800 580 6,620 1,500 $ 5,120 2015 $132,000 74,700 57,300 38.600 515 18,185 5,800 $ 12,385 Required: 1. Compute the times interest earned ratios for 2016 and 2015. (Round your answers to 1 decimal place.) Times Interest Earned 2015 2016 I |