Milton, Inc. provides the following income statement for 2019:
|
Net Sales |
$240,000 |
|
Cost of Goods Sold |
110,000 |
|
Gross Profit |
$130,000 |
|
Operating Expenses: |
|
|
Selling Expenses |
45,000 |
|
Administrative Expenses |
12,000 |
|
Total Operating Expenses |
57,000 |
|
Operating Income |
$73,000 |
|
Other Income and (Expenses): |
|
|
Loss on Sale of Capital Assets |
(27 comma 00027,000) |
|
Interest Expense |
(1 comma 0001,000) |
|
Total Other Income and (Expenses) |
(28 comma 00028,000) |
|
Income Before Income Taxes |
$ 45 comma 000$45,000 |
|
Income Tax Expense |
5 comma 6005,600 |
|
Net Income |
$ 39 comma 400$39,400 |
Calculate the
timesminus−interestminus−earned
ratio. (Round your answer to two decimal places.)
A.
39.4039.40
times
B.
73.0073.00
times
C.
45.0045.00
times
D.
46.0046.00
times
D.46.00 times.
times interest earned ratio = (net income + income tax expense +interest expense) / interest expense
=>(39,400+5600+1000) / 1000
=>46,000/1000
=>46.00 times.
Milton, Inc. provides the following income statement for 2019: Net Sales $240,000 Cost of Goods Sold...