In a Recent Year Ley Corporation Had Net Income of $150,000

question 167

Multiple Choice

In a recent year Ley Corporation had net income of $150,000, interest expense of $30,000, and a times interest earned ratio of 8. What was Ley Corporation's income before taxes for the year?

• A) $270,000
• B) $240,000
• C) $210,000
• D) None of these answer choices are correct.

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Definitions:

Salvage Value

The predicted value at which an asset can be sold after its useful life concludes.

Working Capital

The difference between a company's current assets and current liabilities, reflecting its short-term financial health and operational efficiency.

Net Present Value

A calculation that compares the present value of cash inflows with the present value of cash outflows over a period of time.

Working Capital

The difference between a company's current assets and current liabilities, indicating its ability to meet short-term obligations.