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The condensed balance sheet and income statement for Marjoram Company are presented below. ...

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Accounting

The condensed balance sheet and income statement for Marjoram Company are presented below.

MARJORAM COMPANY
Balance Sheet
At December 31, 2021
Cash $ 25,500
Notes receivable (due August 15, 2022) 42,000
Accounts receivable (net) 51,000
Merchandise inventory 74,500
Property, plant, and equipment (net) 315,000
Intangible assets 15,000
Total assets $ 523,000
Current liabilities $ 120,400
Bonds payable(10%) (long-term) 110,000
Common stock 61,000
Retained earnings 231,600
Total liabilities and equity $ 523,000

MARJORAM COMPANY
Income Statement
For the Year ended December 31, 2021
Sales $ 899,000
Cost of goods sold 487,400
Gross profit $ 411,600
Operating expenses 181,800
Operating income $ 229,800
Interest expense 11,000
Income before income tax $ 218,800
Income tax expense 65,640
Net income $ 153,160

Required: Compute the times interest earned ratio for Marjoram Company. (Round your answer to 2 decimal places.)

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