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Question - Sales are $1.44 million, cost of goods sold is $570,000, depreciation expense is $144,000, other operating expenses is $294,000, addition to retained earnings is $133,100, dividends per share is $1, tax rate is 35 percent, and number of shares of common stock outstanding is 84,000. LaTonya's Flop Shops has no preferred stock outstanding.
Use the above information to calculate the times interest earned ratio for LaTonya's Flop Shops, Inc.
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