The Times Interest Earned Ratio of McHugh Company Is 4

question 55

Multiple Choice

The times interest earned ratio of McHugh Company is 4.5 times.The interest expense for the year was $20,000,and the company's tax rate is 40%.The company's net income is:

• A) $22,000.
• B) $42,000.
• C) $54,000.
• D) $66,000.

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Definitions:

Diffusion Rate

The diffusion rate is the rate at which particles spread from areas of high concentration to areas of low concentration, influenced by factors such as temperature and particle size.

Molecular Weight

The sum of the atomic weights of all atoms in a molecule, indicating the mass of the molecule relative to the mass of a carbon-12 atom.

Aqueous Solution

A solution in which the solvent is water, commonly used in a wide range of chemical and biological processes.

Solute

A substance that is dissolved in another substance (solvent), forming a solution, which can be a solid, liquid, or gas.