Last Year Javer Corporation Had Net Income of $200,000, Income

question 15

Multiple Choice

Last year Javer Corporation had net income of $200,000, income tax expense of $74,000, and interest expense of $20,000. The corporation's times interest earned was closest to:

• A) 10.0
• B) 11.0
• C) 5.3
• D) 14.7

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Definitions:

Cash Collections

The process of gathering all actual cash received by a company from its various sources, including sales, loans, investments, and other incomes.

Financial Manager

A professional responsible for managing a company's financial health by developing strategies, planning, and overseeing investment activities.

Cash Collections

The process of gathering and managing incoming cash payments from customers or clients.

Sales

The activities involved in selling goods or services to customers for revenue.