Last Year, Hadley Bakery's Income Statement Reported the Following: Net

question 95

Multiple Choice

Last year, Hadley Bakery's income statement reported the following: net income, $325,600; interest expense, $81,400; and income tax expense, $113,960. The company's times interest earned ratio is

• A) 5.0 times.
• B) 6.4 times.
• C) 4.0 times.
• D) 4.6 times.

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Definitions:

Intangible Products

Non-physical items that hold value, such as software, copyrights, and services.

Tangible Products

Physical items that can be perceived by touch such as electronics, apparel, and automobiles.

Produces

Refers to the creation or manufacturing of goods and services for sale.

Social Responsibility

The obligation of a business to have a positive effect on society on four levels—economic, legal, ethical, and philanthropic.