Broch Corporation's income statement appears below:Income StatementSales (all on account)$1,220,000 Cost of goods sold 760,000 Gross margin 460,000 Operating expenses 415,692 Net operating income 44,308 Interest expense 14,000 Net income before taxes 30,308 Income taxes (35%) 10,608 Net income$19,700 The company's times interest earned ratio is closest to:
A. 1.41
B. 3.16
C. 2.16
D. 4.87
Answer: B
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