The Following Data Came from the Financial Statements of Sawyer

question 151

Multiple Choice

The following data came from the financial statements of Sawyer Company: $\begin{array}{lr}\text { Total Assets } & \$ 369,000 \\\text { Total Liabilities } & 171,000 \\\text { Total Stockholders' Equity } & 198,000 \\\text { Income Tax Expense } & 7,200 \\\text { Interest Expense } & 900 \\\text { Net Income } & 117,000\end{array}$ What is the Sawyer's times interest earned ratio?

• A)130
• B)129
• C)122
• D)139

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Definitions:

Larceny

The unlawful taking and carrying away of personal property with the intent to deprive the rightful owner permanently.

Threat Of Force

The use or promise of physical power to coerce or compel action from another party.

Model Penal Code

A text designed to stimulate and assist U.S. state legislatures to update and standardize the penal law of the United States.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights and liabilities, allowing it to enter into contracts, own assets, and be liable for its actions.