The income statement for J and T Seafood appears below.
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JAND T SEAFOOD
Income Statement
For the Year Ended December 31, 2008
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Sales
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$400,000
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Cost of goods sold
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230,000
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Gross profit
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170,000
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Expenses (including $16,000 interest and $24,000 income taxes)
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100,000
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Net income
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$70,000
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Additional information:
1. The weighted average common shares outstanding in 2008 were 30,000 shares.
2. The market price of J and T Seafood stock was $13 in 2008.
3. Cash dividends of $23,000 were paid, $5,000 of which were to preferred stockholders. Instructions Compute the times interest earned ratio for 2008.