A Company's Had Fixed Interest Expense of $6,000,its Income Before

question 177

Multiple Choice

A company's had fixed interest expense of $6,000,its income before interest expense and any income taxes is $18,000,and its net income is $8,400.The company's times interest earned ratio equals:

• A)0.33.
• B)0.71.
• C)1.40.
• D)3.00.
• E)12,000.

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Definitions:

Continuous Improvement

A continuous process aimed at enhancing products, services, or processes through gradual improvements progressively.

Internal Customers

Employees or departments within an organization that rely on the support or services of each other to accomplish their tasks.

CRM Program

Customer Relationship Management program; a system for managing a company's interactions with current and potential customers, often leveraging data analysis about customers' history with a company to improve business relationships.

On-time Delivery

The measure of a company's ability to fulfill its service or product delivery commitments within the agreed upon timeframe, critical for customer satisfaction and loyalty.