In 20X4, P Co Reported Net Earnings of $1,933 Million

question 32

Multiple Choice

In 20X4, P Co reported net earnings of $1,933 million, interest expense of $395 million and income taxes of $270 million. In 20X3, they reported net earnings of $2,142 million, interest expense of $478 million and income taxes of $818 million. Calculate the times interest earned ratio for 20X4 and 20X3, respectively.

• A) 5.05 and 4.48 times
• B) 6.58 and 7.19 times
• C) 5.73 and 6.19 times
• D) 6.05 and 5.48 times

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Definitions:

Diabetes Insipidus

A condition characterized by excessive thirst and excretion of large amounts of severely diluted urine, with reduction of fluid intake having no effect on the concentration of the urine.

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A group of genetic conditions that affect the adrenal glands and can interfere with the body's hormone production, resulting in abnormal genital development and other symptoms.

Genetic Counseling

A communication process that aims to help individuals and families understand and adapt to the medical, psychological, and familial implications of genetic contributions to disease.