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apter 13 Exercises vod 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 38 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 Gross Profit Sellins. General, and Administrative Expenses Interest Expense Incone before Income Tax Expense Income Tax Expense Net Income 2018 $ 113,000 66,500 46,500 37.300 630 3,5 2.000 5.6,70 2017 $ 139,500 26,700 62,500 39.680 540 22,660 6.300 5 16,360 ances Required: 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.
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 finan Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the times interest earned ratios for 2018 and 2017. (Round your answers to 1 decimal place.) Year Times Interest Earned 2017 2018 Required 2 >
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. Required 1 Required 2 Does Gonzalez generate sufficient net income in both years before taxes and interest) to cover the cost of debt financing? Yes No < Required 1 < Prev 3 of 4 !!! Next >