another choice is 1.98 which one is correct? A company had interest expense of $8,100, income...

Question

Question

another choice is 1.98

which one is correct?

business accounting

Answer 1

Answer #1

C. 2.40

Times interest earned ratio = EBIT / Interest expense

Times interest earned ratio = $19,400 / $8,100

Times interest earned ratio = 2.40

Answer 2

Similar Homework Help Questions

1. A company's interest expense is $19,000. Its income before interest expense and income taxes is...

1. A company's interest expense is $19,000. Its income before interest expense and income taxes is $128,250. Its net income is $52,600. The company's times interest earned ratio equals: Multiple Choice 2.44. 0.148. 6.75. 0.41. 0.36. 2. A company's income before interest expense and income taxes is $100,000 and its interest expense is $50,000. Its times interest earned ratio is: Multiple Choice 1.00 2.00 0.70 0.50 1.50
1. A company's interest expense is $26,000. Its income before interest expense and income taxes is...

1. A company's interest expense is $26,000. Its income before interest expense and income taxes is $221,000. Its net income is $106,100. The company's times interest earned ratio equals:
I recent yer waterway Industries had net income of $746000, interest expense of $146000, and a...

I recent yer waterway Industries had net income of $746000, interest expense of $146000, and a times interest earned ratio of . What was Waterway Industries's income before taxes for the year? $968000 $1314000 $1168000 None of these answers are correct

Wal-Mart had income before interest expense and income taxes of $12,581 million and interest expense of...

Wal-Mart had income before interest expense and income taxes of $12,581 million and interest expense of $1,063 million. Sears had income before interest expense and income taxes of $3,596 million and interest expense of $1,143 million. Calculate the times interest earned for each company and comment on the results.
Hsu Company reported the following on its income statement: Income before income taxes Income tax expense...

Hsu Company reported the following on its income statement: Income before income taxes Income tax expense Net income $420,000 120,000 $300,000 Interest expense was $80,000. Hsu Company's times interest earned ratio is 6.25 times 5.25 times 8 times 5 times Which of the following is required by the Sarbanes-Oxley Act?
I need someone to help me in solving these exercises A company had income before interest...

I need someone to help me in solving these exercises A company had income before interest expense and income taxes of $176,000, and its interest expense is $55,000. Calculate the company's times interest earned ratio. A company borrowed $60,000 by signing a 60-day, 10% note payable from its bank. Compute the total cash payment due on the note's maturity date.

For the FY 2018, Frederick Company had net sales of $1,100,000 and net income of $75,000,...

For the FY 2018, Frederick Company had net sales of $1,100,000 and net income of $75,000, paid income taxes of $20,000, and had before tax interest expense of $12,500. Use this information to determine the Times Interest Earned Ratio. (Round your answers to one decimal place)
For the FY 2018, Frederick Company had net sales of $900,000 and net income of $50,000,...

For the FY 2018, Frederick Company had net sales of $900,000 and net income of $50,000, paid income taxes of $20,000, and had before tax interest expense of $10,000. Use this information to determine the Times Interest Earned Ratio. (Round your answers to one decimal place
Horizon Company had interest expense of $767,000 and income before income tax expense of $6,210,000 in...

Horizon Company had interest expense of $767,000 and income before income tax expense of $6,210,000 in the past fiscal year. What is Horizon's times interest earned?

34. If a company had net income of $2,560,350, interest expense of $231,000, a tax rate...

34. If a company had net income of $2,560,350, interest expense of $231,000, a tax rate of 35%, and operating income of $4,170,000, what is the times interest earned ratio? 6.67 6.32 18.05 3.88 11.08