A Company Has Current Assets of $5 Million and Net

question 72

Multiple Choice

A company has current assets of $5 million and net income of $10 million.Current liabilities total $2.5 million,interest expense is $2 million,and income tax expense is $3 million.The times interest earned ratio for this company is:

• A)0.5.
• B)7.5.
• C)0.3.
• D)2.0.

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Definitions:

Arshile Gorky

A seminal Armenian-American painter, associated with the early movement of abstract expressionism, known for his influential and emotionally charged works.

Performance Art

An American avant-garde art trend of the 1960s that made time an integral element of art. It produced works in which movements, gestures, and sounds of persons communicating with an audience replace physical objects. Documentary photographs are generally the only evidence remaining after these events. See also Happenings.

Francis Bacon

A British painter known for his bold, grotesque, emotionally charged, and raw imagery.

War

A state of armed conflict between different countries or different groups within a country, involving organized use of force and weapons.