An Analysis of the Income Statement Revealed That Interest Expense

question 92

Multiple Choice

$$\begin{array}{l}\text { Tate Company reported the following on its income statement: }\\\begin{array} { l r } \text { Income before income taxes } & \$ 500,000 \\\text { Income tax expense } & \underline{150,000} \\\text { Net income } & \underline{\underline{\$ 350,000}}\end{array}\end{array}$$ An analysis of the income statement revealed that interest expense was $100,000.Tate Company's times interest earned was

• A)4 times.
• B)6 times.
• C)5 times.
• D)3.5 times.

---

Definitions:

Same Size

A principle or perception where objects are understood to maintain constant size, despite changes in their distance from the observer.

Retinal Disparity

The slight difference in the images projected on our two retinas because of the different angles of viewing, providing a cue for depth perception.

Depth Cue

Visual information that helps to understand the distance or depth of objects in a scene.

Born Blind

A condition where an individual lacks vision from birth due to genetic factors, developmental issues, or other causes.