Last Year Javer Corporation Had Net Income of $200,000, Income

question 15

Multiple Choice

Last year Javer Corporation had net income of $200,000, income tax expense of $74,000, and interest expense of $20,000. The corporation's times interest earned was closest to:

• A) 10.0
• B) 11.0
• C) 5.3
• D) 14.7

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Definitions:

Anabolic Reaction

A metabolic pathway that constructs molecules from smaller units, usually requiring energy in the process, characteristic of synthesis in living organisms.

Competitive Inhibitors

Substances that bind to the active site of an enzyme, competing with the substrate and thus inhibiting enzyme activity.

Chemical Energy

The potential of a chemical substance to undergo a transformation through a chemical reaction, resulting in the release of energy.

Kinetic Energy

The energy that a body possesses due to its motion, dependent on the mass of the body and the square of its velocity.