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

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Question

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

business accounting

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Answer 1

Answer #1

Answer

--Times Interest earned ratio = Net Income before Interest expense and Income tax or Operating Income / Interest expense

=$ 4,170,000 / $ 231,000

= 18.0519480519 or 18.05

--Correct Answer = Option #3: 18.05

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Answer 2

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

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

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