The income statement for Virginia Communications follows. Assume Virginia Communications signed a 120-day, 6%, $10,000 note on June 1, 2016, and that this L Net Income $5,790 was the only note payable for the company.

Requirements
1. Fill in the missing information for Virginias year ended July 31, 2016, income statement.
2. Compute the times-interest-earned ratio for the company.

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VIRGINIA COMMUNICATIONS Income Statement Year Ended July 31, 2016 $31,000 4,700 3,400 Sales Revenue Less: Sales Returns and Allowances Sales Discounts Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses $ 22,900 13,200 9,700 Selling Expenses Administrative Expenses Total Operating Expenses 710 1,650 2,360 Operating Income Other Revenues and (Expenses) 7,340 Interest Expense Total Other Revenues and (Expenses) Net Income before Income Tax Expense Income Tax Expense Net Income 1,450