Use the Following Information for Questions:
Dorada Industries' Books Revealed

question 4

Multiple Choice

Use the following information for questions:
Dorada Industries' books revealed the following data for 2011: $$\begin{array} { l c c r } \text { Total assets } & \$ 575,000 & \text { Shareholders' equity } & \$ 222,900 \\\text { Current liabilities } & 52,100 & \text { Long-term liabilities } & 300,000 \\\text { Operating Cash flow } & 125,500 &\end{array}$$
-Which of the following represents the times-interest-earned ratio?

• A)Net income ÷ interest
• B)[Net income + interest × 1 - tax rate))] ÷ interest
• C)Income before interest but after taxes ÷ interest
• D)Income before interest and taxes ÷ interest

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Definitions:

Fixated

Exhibiting an obsessive or excessive attachment to someone or something, or a developmental state that persists beyond its typical period.

Predictability

The ability to be anticipated or to accurately forecast future events or behaviors based on current knowledge or patterns.

Regularity

The quality or state of being consistent or uniform in procedure, form, or arrangement; often referring to patterns or rhythms in nature or behavior.

Actively Playful

Engaging in activity with energy and enthusiasm, often referring to the lively and spirited manner in children's play.