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Financial statements for Orantes Company appear below:

Orantes Company

Balance Sheet

December $31,20$X$6$ and $20$X$5($dollars in thousands$)$

$20$X$620$X$5$

Current assets:

Cash and marketable securities $$120$ $$100$

Accounts receivable, net $180160$

Inventory $130130$

Prepaid expenses $5050$

Total current assets $480440$

Noncurrent assets:

Plant & equipment, net $2,0101,970$

Total assets $$2,490$ $$2,410$

Current liabilities:

Accounts payable $$120$ $$120$

Accrued liabilities $3040$

Notes payable, short term $170170$

Total current liabilities $320330$

Noncurrent liabilities:

Bonds payable $270300$

Total liabilities $590630$

Shareholders' equity:

Preferred shares, $$10$ par, $10\%120120$

Common shares, $$10$ par $200200$

Additional paid$-$in capital$--$common shares $270270$

Retained earnings $1,3101,190$

Total shareholders' equity $1,9001,780$

Total liabilities & shareholders' equity $$2,490$ $$2,410$

Orantes Company

Income Statement

for the Year Ended December $31,20$X$6($dollars in thousands$)$

Sales $($all on account$)$ $$2,510$

Cost of goods sold $1,750$

Gross margin $760$

Operating expenses $300$

Net operating income $460$

Interest expense $30$

Net income before taxes $430$

Income taxes $(30\%)129$

Net income $$301$

Dividends during $20\backslash$times $6$ totaled $$181$ thousand, of which $$12$ thousand were preferred dividends.

The market price of a share of common stock on December $31,20\backslash$times $6$ was $$280.$

Orantes Company's times interest earned for $20\backslash$times $6$ was closest to:

Question $4$ options:

$14\mathrm{.}3$ times.

$10\mathrm{.}0$ times.

$15\mathrm{.}3$ times.

$25\mathrm{.}3$ times.

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