Wayne,Inchas Net Sales Revenue of $348,800,cost of Goods Sold of $274,400,and

question 161

Multiple Choice

Wayne,Inc.has net sales revenue of $348,800,cost of goods sold of $274,400,and net income of $2,400.If interest expense is $8,000 and income tax expense is $800,the times interest earned ratio is:

• A)1.4.
• B)0.33.
• C)1.3.
• D)0.40.

---

Definitions:

Production Budget

A financial plan showing the number of units to be produced in a period to meet sales and inventory requirements.

Merchandise Purchases Budget

A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.

Not-For-Profit Entities

Organizations that operate for purposes other than generating profit, often focusing on social, educational, or charitable activities.

Objectives

Specific, measurable goals set by a business or individual to guide activities and measure performance effectively.