The financial statements of Burnaby Mountain Trading Company are shown below. EFG Corp.Income Statement 2018 Sales $7,000,000 Costs of Goods Sold 5,000,000————————- Gross Profit $2,000,000 Selling and Administrative Expenses 1,600,000————————- EBIT $400,000 Interest Expense 150,000————————– Income Before Tax $250,000 Taxes $100,000———————— Net Income $150,000 EFG Corp.Comparative Balance Sheets 2018 2017 Cash $90,000 $80,000 Accounts Receivable 810,000 800,000 Inventory 800,000 720,000 Total Current Assets ———————$1,700,000 ——————–$1,600,000 Fixed Assets 2,600,000——————— 2,400,000 ——————- Total Assets $4,300,000 ___________________ $4,000,000 __________________ Accounts Payable $500,000 $400,000 Bank Loans 100,000———————- 100,000———————- Total Current Liabilities $600,000 $500,000 Long-term Bonds 400,000———————- 300,000———————- Total Liabilities $1,000,000 $800,000 Common Stock (20,000 shares) 500,000 500,000 Retained Earnings 2,800,000———————– 2,700,000———————- Total Equity $3,300,000———————– $3,200,000———————- Total Liabilities and Equity $4,300,000 $4,000,000 Note: The common shares are trading in the stock market for $27 each. Refer to the financial statements of EFG Corp. The firm’s times-interest earned ratio for 2018 is _________. Click on the arrow next to the file below. Next, create a new sheet in the Respondus LockDown Browser spreadsheet. You can use this blank spreadsheet to calculate the answer. Blank Spreadsheet.xlsx
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