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Westmoreland Company
Following Are Selected Data from Westmoreland Company's Financial

question 87

Multiple Choice

Westmoreland Company
Following are selected data from Westmoreland Company's financial statements.
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20182017 Current liabilities $230,000$160,000 Long-term debt 120,000320,000 Stockhol ders’ equity 420,000540,000 Cash payments for additions to plant and equipment 45,00032,000 Net cash flow from operating activities 80,00051,000 Interest and principal payments 12,0008,000 Net operating cash flows before interest and taxes 68,00043,000 Net income 90,00072,000 Interest expense 8,50011,500 Income taxes 16,00014,500 Dividends paid 15,00030,000\begin{array}{lrr}&2018&2017\\\text { Current liabilities } & \$ 230,000 & \$ 160,000 \\\text { Long-term debt } & 120,000 & 320,000 \\\text { Stockhol ders' equity } & 420,000 & 540,000 \\\text { Cash payments for additions to plant and equipment } & 45,000 & 32,000 \\\text { Net cash flow from operating activities } & 80,000 & 51,000 \\\text { Interest and principal payments } & 12,000 & 8,000 \\\text { Net operating cash flows before interest and taxes } & 68,000 & 43,000 \\\text { Net income } & 90,000 & 72,000 \\\text { Interest expense } & 8,500 & 11,500 \\\text { Income taxes } & 16,000 & 14,500 \\\text { Dividends paid } & 15,000 & 30,000\end{array} ​
-Refer to the Westmoreland Company data.
The company's times interest earned ratio for 2018

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