A Company Has Current Assets of $5 Million and Net

question 72

Multiple Choice

A company has current assets of $5 million and net income of $10 million.Current liabilities total $2.5 million,interest expense is $2 million,and income tax expense is $3 million.The times interest earned ratio for this company is:

• A)0.5.
• B)7.5.
• C)0.3.
• D)2.0.

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Definitions:

White Pulp

Spherical areas within the spleen composed mainly of immune cells and involved in producing an immune response.

Follicle

A small secretory cavity or gland, though often referring to the structure in the ovary that releases an egg.

Lymphatic Capillary

Extremely fine vessels that collect lymph fluid from tissues, initiating its return to the blood vascular system.

Interstitial Fluid

The fluid that fills the spaces between cells of the body, providing a medium for the exchange of substances.