The Following Information Was Obtained from the Records of Trophy

question 48

Multiple Choice

The following information was obtained from the records of Trophy Company for 2010: $\begin{array}{ll}\text { Net sales } & \$ 2,600,000 \\\text { Interest expense } & 80,000 \\\text { Income tax expense } & 40,000 \\\text { Net income } & 100,000\end{array}$ How many times was interest earned in 2010?

• A)1.25 times
• B)1.75 times
• C)2.75 times
• D)32.5 times

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