Response to the following problem:
Sherwill's statement of consolidated income is as follows:
Net sales $658
Other income 8
666
Costs and expenses:
Cost of products sold 418
Selling, general, and administrative expenses 196
Interest 16
630
Income before income taxes and extraordinary charges 36
Income taxes 18
Income before extraordinary charge 18
Extraordinary charge-losses on tornado damage (net) 4
Net income $ 14
Required
a. Compute the times interest earned.
b. Compute the fixed charge coverage.