Garnet Company Reported the Following on Its Income Statement ?
an Analysis of the Income Statement Revealed That Interest

question 80

Multiple Choice

Garnet Company reported the following on its income statement: ? $\begin{array}{lr}\text { Income before income taxes } & \$ 450,000 \\\text { Income tax expense } & 52,000 \\\text { Net income }&\$398,000\end{array}$ ?
An analysis of the income statement revealed that interest expense was $50,000.Garnet Company's times interest earned are earned was:

• A) 7.8 times.
• B) 11 times.
• C) 10 times.
• D) 8.1 times.

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