Aps Company Reported the Following on Its Income Statement An Analysis of the Income Statement Revealed That Interest Expense

question 161

Multiple Choice

Aps Company reported the following on its income statement: $\begin{array}{lr}\text { Income before income taxes } & \$ 420,000 \\\text { Income tax expense } & 120,000 \\\text { Net income } & \$ 300,000\end{array}$ An analysis of the income statement revealed that interest expense was $70,000. Aps Company's times interest earned was

• A) 5.3 times.
• B) 9 times.
• C) 7 times.
• D) 4.3 times.

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