Wildlife Co

question 60

Multiple Choice

Wildlife Co.reported net income of $8.3 million,interest expense of $0.5 million and $0.2 million of income tax expense.Wildlife's average total assets are $65.8 million and average stockholders' equity is $48.6 million.Wildlife's times interest earned ratio is closest to:

• A)41.5 times
• B)6 times
• C)18 times
• D)45 times

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Definitions:

Warranty of Quality

A guarantee that a sold product will meet specified quality and performance standards.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to harmonize and standardize laws across states.

Implied Warranty

A legal premise that goods sold meet certain criteria for use as understood by the buyer and seller, even if not explicitly stated.

Express Warranty

An explicitly stated guarantee by a seller regarding the condition or quality of a product.