Neelty Corporation Has Interest Expense of $16,000, Sales of $600,000

question 281

Multiple Choice

Neelty Corporation has interest expense of $16,000, sales of $600,000, a tax rate of 30%, and after-tax net income of $56,000. The company's times interest earned ratio is closest to:

• A) 6.0
• B) 5.0
• C) 4.5
• D) 3.5

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Definitions:

Solve Problems

The process of finding solutions to difficult or complex issues.

Past Experience

The knowledge or mastery a person has gained from previous work, activities, or situations.

Path-Goal Theory

A leadership theory that suggests leaders should adjust their leadership styles based on the situation to influence followers' perceptions of their work goals, paths to those goals, and work environment.

Robert House

A scholar known for his contributions to leadership theory, particularly the Path-Goal Theory of leadership.