Ingram Dog Kennels Had the Following Financial Statistics for 2012

question 36

Multiple Choice

Ingram Dog Kennels had the following financial statistics for 2012: $$\begin{array} { l r } \text { Long-term debt (average rate of interest is } 8 \% ) & \$ 400,000 \\\text { Interest expense } & 35,000 \\\text { Net income } & 48,000 \\\text { Income tax } & 46,000 \\\text { Operating income } & 107,000\end{array}$$ What is the times interest earned for 2012?

• A)11.4 times
• B)3.3 times
• C)3.1 times
• D)3.7 times
• E)None of the answers are correct.

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Definitions:

Import Restrictions

Measures that governments impose to control the amount and type of goods that enter a country, typically to protect domestic industries.

Domestic Producers

Companies or individuals that create goods and services within their own country.

Domestic Consumers

Domestic consumers are individuals or households within a country that purchase goods and services for personal use, contributing to the internal market's demand.

Import Quotas

Limits set by governments on the quantity or value of certain goods that can be imported into a country, used to protect domestic industries.