(Solution) - Paxton Company provided the following income statement for last year Sales -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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Paxton Company provided the following income statement for last year:
Sales................................................$ 87,021,000
Cost of goods sold................................(62,138,249)
Gross margin.......................................$ 24,882,751
Operating expenses...............................(19,371,601)
Operating income..................................$ 5,511,150
Interest expense.......................................(875,400)
Income before taxes..............................$ 4,635,750
Income taxes.......................................(1,854,300)
Net income.........................................$ 2,781,450
Required:
Calculate the times-interest-earned ratio.