In a Recent Year Hill Corporation Had Net Income of $140,000

question 33

Multiple Choice

In a recent year Hill Corporation had net income of $140,000, interest expense of $20,000, and tax expense of $40,000. What was Hill Corporation's times interest earned ratio for the year?

• A) 10
• B) 9
• C) 8
• D) 7

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Definitions:

Goods and Services Received

The tangible and intangible items that are provided or delivered to a recipient.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of the shareholders.

Balance Sheet

A financial statement that presents the assets, liabilities, and equity of a company at a specific point in time, giving a snapshot of its financial condition.

Liabilities

Financial obligations or debts that a company owes to others, such as loans, accounts payable, and mortgages.