The Following Amounts Were Taken from the Financial Statements of R.Dodd

question 66

Multiple Choice

The following amounts were taken from the financial statements of R.Dodd Company: $\begin{array}{lrr}&2017&2016\\\text { Current liabilities } & \$ 1,280,000 & \$ 1,220,000 \\\text { Long-term liabilities } & 1,800,000 & 1,600,000 \\\text { Interest expense } & 100,000 & 50,000 \\\text { Income tax expense } & 50,000 & 30,000 \\\text { Net income } & 300,000 & 170,000 \\\text { Net cash provided by operating activity } & 325,000 & 270,000\end{array}$ The times interest earned for 2017 is

• A) 3.0 times.
• B) 3.5 times.
• C) 4.0 times.
• D) 4.5 times.

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Definitions:

Millennial

A person born approximately between the early 1980s and late 1990s; often characterized by their familiarity with technology, media, and digital communications.

Multitask

The ability or practice of performing multiple tasks or duties simultaneously or with overlapping time frames.

Immediate Gratification

The desire or tendency to obtain pleasure or fulfillment without delay or deferment.

Socio-Cultural Conditions

The social and cultural factors that influence an individual's behavior, beliefs, and interactions within a society.