Consider the following operating figures:
| Net sales Don't use plagiarized sources. Get Your Custom Essay on compute the cash basis times interest earned 544439 For $10/Page 0nly | |
| Cost and deductions: | |
| Cost of sales | 792,755 |
| Selling and administration | 264,566 |
| Interest expense, net | 4,311 |
| Income taxes | 5,059 |
| 1,066,691 | |
| $ 12,452 |
Note: Depreciation expense totals $40,000.
Required a. Compute the times interest earned.
b. Compute the cash basis times interest earned.
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