Lucas Company Has Provided the Following Information

question 62

Multiple Choice

Lucas Company has provided the following information:
• Cash flow from operating activities,$360,000
• Net income,$306,000
• Interest expense,$30,000
• Interest cash payments,$20,000
• Income tax payments,$240,000
• Income tax expense,$246,000
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What was Lucas' times interest earned ratio?

• A)18.9
• B)19.4
• C)28.3
• D)31.0

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Definitions:

Cross-Validation

Verifying the results obtained from a validation study by administering a test or test battery to a different sample (drawn from the same population)

Original Validation Study

A research endeavor that aims to determine the effectiveness and accuracy of a tool, test, or process for the first time.

Myers-Briggs Type Indicator

A psychometric questionnaire designed to measure psychological preferences in how people perceive the world and make decisions.

Personality Test

A psychometric assessment designed to evaluate an individual’s character traits, behaviors, and tendencies to determine suitability for roles or understand personal dynamics.