Refer to the Following Selected Financial Information from Shakley's Incorporated

question 138

Multiple Choice

Refer to the following selected financial information from Shakley's Incorporated.Compute the company's times interest earned for Year 2. $$\begin{array} { l r r } & \text { Year 2 } & \text { Year } 1 \\\text { Net sales } & \$ 478,500 & \$ 426,250 \\\text { Cost of goods sold } & 276,300 & 250,120 \\\text { Irterest experse } & 9,700 & 10,700 \\\text { Net incomebefore tax }& 67,250 & 52,680 \\\text { Net income after tax } & 46,050 & 39,900 \\\text { Total assets } & 317,100 & 288,000 \\\text { Total liabilities }& 181,40 0 & 167,300 \\\text { Total equity } & 135,70 0 & 120,700\end{array}$$

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Definitions:

Parotid Swelling

Inflammation or enlargement of the parotid glands, the largest of the salivary glands, which can be due to infection, blockage, or other medical conditions.

Lanugo

Fine, soft hair that covers the body and limbs of a fetus or newborn, which is usually shed before or shortly after birth.

Rigidity, Perfectionism

A tendency to be extremely strict and demanding of oneself, aiming for flawlessness in all aspects of life.

Imbalanced Nutrition

A state where an individual's dietary intake does not provide the necessary nutrients for proper health and well-being.