In a recent year Hart Corporation had net income of $125,000, interest expense of $30,000, and...

Question

Question

business accounting

Answer 1

Answer #1

Earnings before interest and taxes(balance)(165,000+30,000)	195,000
Less:interest expense	30,000
EBT(125,000+40,000)	165,000
Less:tax expense	40,000
Net income	125,000

Times interest earned=Earnings before interest and taxes/interest expense

=195,000/30,000

=6.5

Add a comment

Answer 2

Similar Homework Help Questions

In the recent year Hill Corporation had net income of $210,000, interest expense of $50,000, and...

In the recent year Hill Corporation had net income of $210,000, interest expense of $50,000, and tax expense of $90,000. What was Hill Corporation's times interest earned for the year? Group of answer choices $1,000,000 $1,350,000 $1,200,000 None of these answers are correct.
88) The times interest earned ratio of Whitney Corporation is 3.0. The interest expense for the...

88) The times interest earned ratio of Whitney Corporation is 3.0. The interest expense for the year is $21,000, and the corporation's tax rate is 40%. The corporation's after-tax net income must be: A) $63,000 B) $25,200 C) $30,000 D) $42,000
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

From the income statement: Depreciation expense Interest expense $165,000 22,000 Income tax Net income 30,000...

From the income statement: Depreciation expense Interest expense $165,000 22,000 Income tax Net income 30,000 80,000 From the balance sheet: Current liabilities $90,000 Long-term debt 660,000 Deferred income taxes 35,000 Total Liabilities $785,000 Preferred stock 8,000 Common stock 235,000 Premium on common stock 150,000 Retained earnings 560,000 Total Stockholders’ Equity $953,000 Total Liabilities & Stockholders’ Equity $1,738,000 1. What is the Times Interest Earned ratio? _________ /_______ = ___________ please show work!:)
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
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?

A company's net income after tax was $400,000 for its most recent year. The company's income...

A company's net income after tax was $400,000 for its most recent year. The company's income statement included Income Tax Expense of $140,000 and Interest Expense of $60,000. At the beginning of the year the company's stockholders' equity was $1,900,000 and at the end of the year it was $2,100,000. 8. What is the times interest earned for the company? 9. What is the after-tax return on stockholder's equity for the year? 10. The debt to equity ratio is computed...
Calculating the Times Interest Earned Ratio For the most recent year

Calculating the Times Interest Earned Ratio For the most recent year, ICU Windows, Inc., had sales of $380,000, cost of goods sold of $110,000, depreciation expense of $32,000, and additions to retained earnings of $41,620. The firm currently has 30,000 shares of common stock outstanding, and the previous year's dividends per share were $1.50. Assuming a 34 percent income tax rate, what was the times interest earned ratio?
The following data come from the financial records of Adams Corporation for 2018: Sales Interest expense...

The following data come from the financial records of Adams Corporation for 2018: Sales Interest expense Income tax expense Net income $845,000 5,800 26,000 30,000 Required How many times was interest earned in 2018? (Round your answer to 2 decimal places.) Interest Damod 9.65 times

The Docksider has net income for the most recent year of $24,650. The tax rate was...

The Docksider has net income for the most recent year of $24,650. The tax rate was 15 percent. The firm paid $1,800 in total interest expense and deducted $2,900 in depreciation expense. What was the cash coverage ratio for the year? 20.48 times 11.48 times 12.39 times 18.72 times