The Following Information Was Obtained from Quayle Company's Income Statement

question 16

Multiple Choice

The following information was obtained from Quayle Company's income statement: $\begin{array}{lr}\text { Income before Interest and Income Tax Expense } & \$ 685,000 \\\text { Interest Expense } & 75,000 \\\text { Income before Income Tax Expense } & 610,000 \\\text { Income Tax Expense } & 213,500 \\\text { Net Income } & \$ 396,500\end{array}$ What is the times interest earned ratio?

• A)5.29
• B)8.13
• C)9.13
• D)1.73

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Definitions:

ERG Theory

A motivational theory proposed by Clayton Alderfer that categorizes human needs into existence, relatedness, and growth needs.

Growth Needs

Desires for personal growth and development.

Motivational Concepts

Theories or ideas that explain how and why individuals are driven to behave in certain ways to achieve personal or professional goals.

Effective Leadership

A leadership approach that emphasizes the ability to influence and guide others towards achieving specific goals in a manner that is efficient, inspiring, and productive.