Answer:
A.
2015	37.7
2016	12.9
B. Yes
Explanation:
Computation of the times interest earned ratios for 2016 and 2015
First step is to find the EBIT
EBIT:	2016 $	2015 $
Gross profit	44,500	58,400
Less Selling, General and Administrative expenses	(36,900)	(38,800)
EBIT	7,600	19,600
Second step is to compute the times interest earned ratios for 2016 and 2015 using this formula 
 Time interest earned = EBIT / Interest expense
Let plug in the formula 
Time interest earned	2016	2015
EBIT	$7,600	$19,600
÷Interest expense	$590	$520
=Time interest earned 12.9	37.7
Therefore the Time interest earned will be :
2015	37.7
2016	12.9
2. Yes Computer Tycoon generate sufficient net income in both 2015 and 2016 before taxes and interest in order to cover the cost of debt financing.