In a Recent Year Cey Corporation Had Net Income of $250,000

question 270

Multiple Choice

In a recent year Cey Corporation had net income of $250,000, interest expense of $50,000, and a times interest earned ratio of 8. What was Cey Corporation's income before taxes for the year?

• A) $450,000
• B) $400,000
• C) $350,000
• D) None of the above.

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Definitions:

Accounting Records

Documents and ledgers that record financial transactions and the financial position of an entity, serving as the basis for financial reporting and analysis.

Service Department Charge Rate

A rate used to allocate service department costs to the products or services produced, often based on the time or resources each product uses.

Personnel Department

A division of a company responsible for managing human resources and employee relations.

Investment Turnover

An indicator of how effectively a corporation utilizes its assets to produce sales or income.