Aslam Company Reported the Following on Its Income Statement for the Year-Ended

question 23

Multiple Choice

Aslam Company reported the following on its income statement for the year-ended June 30, 2014. $$\begin{array} { l r } \text { Earnings before income tax } & \$ 550,000 \\\text { Income tax expense } & \underline { 160,000 } \\\text { Net income } & \$ 390,000\end{array}$$ An analysis of the income statement revealed that interest expense was $60,000 for the year.What was Aslam's interest coverage ratio closest to?

• A)6.5 times
• B)9.2 times
• C)9.9 times
• D)10.2 times
• ($550,000 + $60,000)/$60,000 = 10.2 times

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Definitions:

Airborne Transmission

The spread of diseases or pathogens through the air, via small droplets or particles that can be inhaled by individuals nearby.

Escherichia Coli

A common type of bacteria that can live in the intestines of animals and humans, some strains of which can cause food poisoning or other illnesses.

Influenza

A viral infection that attacks the respiratory system, causing symptoms such as fever, cough, and body aches.

Host's Susceptibility

The degree of sensitivity of a host organism to harmful effects from pathogens or environmental factors.