The Financial Information Below Presents Selected Information from the Financial

The financial information below presents selected information from the financial statements of Johnson Tools,Inc.for the year ended December 31,2008.
Calculate the:
A.Times interest earned ratio
B.Capital acquisitions ratio
C.Quality of income ratio
Comment on each of these ratios.
$\begin{array}{lrlr}\text { Sales revenue } & \$ 43,843 & \text { Amortization expense } & \$ 883 \\\text { Cost of goods sold } & 35,661 & \begin{array}{l}\text { Selling, general \& administrative } \\\text { expenses }\end{array} & 2,784\\\text { Interest expense } & 2,784 & \text { Income tax expense } & 485 \\\text { Net income } & 1,246 & \text { Gross profit } & 8,182 \\\text { Accounts receivable 12/31/07 } & 2,895 & \text { Accounts receivable 12/31/08 } & 2,636 \\\text { Accounts payable 12/31/07 } & 6,543 & \text { Accounts payable 12/31/08 } & 7,519\\\text { Cash paid for income taxes } & 520 & \text { Interest paid to creditors } & 2,500 \\\text { Cash flows from operating } & 3,797 & \text { Cash paid for property, plant, and } & 3,100 \\\text { activities } & & \text { equipment }\\\text {Cash flows from financing }&(2,702) & \text {Cash flows from investing }&(2,260)\\\text { activitics }&&\text { activitics }\end{array}$