A Company's Has Fixed Interest Expense of $52,000, Income Taxes

question 52

Multiple Choice

A company's has fixed interest expense of $52,000, income taxes expense of $121,000, and net income of $281,000. The company's times interest earned ratio equals:

• A) 7.73.
• B) 0.11.
• C) 2.33.
• D) 8.73.
• E) 5.40.