Calculate the Times Interest Earned Ratio Given the Following Information

question 268

Multiple Choice

Calculate the times interest earned ratio given the following information: depreciation expense = $30,000; EBIT = $180,000; cash coverage ratio = 14 times.

• A) 8.0 times
• B) 7.5 times
• C) 11.5 times
• D) 12.0 times
• E) 12.5 times

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Definitions:

Short-Term Memory

The aptitude for storing a minimal amount of details in a directly accessible and active mode for a limited time span.

Deep Processing

A method of learning in which material is examined and understood at a deep, meaningful level, leading to better retention.

Elaboration

The process of adding more information to existing memories, making those memories more detailed and interconnected.

Mental Imagery

The practice of creating representations of objects or events in the mind, often used in visualization techniques for personal development or therapy.