usuce apter 13 Exercises Saved Help Save & Exit Submit Check my work 3 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 2018. Let's see whether these changes are reflected in the income statement of Gonzalez Industries for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Book 2 ences Gross Profit Selling. General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required: 2018 2017 $113,000 $ 139,500 66,500 46,500 76,700 62,000 37,300 39,600 630 540 8,570 22,660 2,000 6,300 56,570 $ 16,360 1. Compute the times interest earned ratios for 2018 and 2017 2. Does Gonzalez generate sufficient net income in both years (before taxes and interest) to cover the cost of debt financing? Complete this question by entering your answers in the tabs below.