The Following Information Was Available for the Year Ended December

question 38

Multiple Choice

The following information was available for the year ended December 31, 2019: $$\begin{array} { l r } \text { Earnings before interest and taxes (operating income) } &\$ 50,000 \\\text { Interest expense } & 10,000 \\\text { Income tax expense } & 12,000 \\\text { Net income } & 28,000 \\\text { Total assets at year-end } & 200,000 \\\text { Total liabilities at year-end } & 120,000\end{array}$$ The times interest earned for the year ended December 31, 2019 was:

• A)2.8 times
• B)4.2 times
• C)5.0 times
• D)6.0 times

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Definitions:

Ecological Ignorance

Lack of understanding about the interconnections and interactions within ecosystems.

Poverty

A socio-economic condition characterized by the lack of basic resources and opportunities necessary for a standard living.

Environmental Degradation

The deterioration of the environment through depletion of resources, destruction of ecosystems, and extinction of wildlife.

Agricultural Runoff

Water from rain or irrigation that carries fertilizers, pesticides, and other substances from agricultural fields into nearby water bodies, potentially causing pollution.