Sherwill’s statement of consolidated income is as follows:

Net sales

$658

Other income

8

Costs and expenses:

666

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.