The Grant Company reported the following income for 2014:
Sales $146,000
Cost of goods sold $88,000
Gross margin $58,000
Selling and administrative expense $31,000
Operating income $27,000
Interest expense $6,600
Income before taxes $20,400
Income tax expense $6,120
Net income $14,280
What is the company's number of times interest is earned ratio?
a. 2.2 times
b. 3.1 times
c. 4.1 times
d. None of these
