Calculate the Times Interest Earned Ratio Given the Following Information

question 37

Multiple Choice

Calculate the times interest earned ratio given the following information: depreciation expense = $6,000; EBIT = $90,000; cash coverage ratio = 8 times.

• A) 8.0 times
• B) 7.5 times
• C) 7.0 times
• D) 6.5 times
• E) 6.0 times

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Definitions:

Negative Reinforcement

A behavior modification process where the likelihood of a behavior is increased by removing or avoiding a negative outcome.

Positive Reinforcement

The process of encouraging or establishing a pattern of behavior by offering rewards when the behavior is exhibited.

Neutral

Describes a state or position of impartiality, or not favoring any side in a conflict, competition, or a situation requiring a choice.

Relearn

The process of learning information, skills, or behaviors again, which were previously learned but may have been forgotten or lost.