Cutsinger Corporation Has Provided the Following Data from Its Most

question 75

Multiple Choice

Cutsinger Corporation has provided the following data from its most recent income statement:
$\begin{array}{lr}\text { Net operating income }&\$55,000\\\text {interest expense. }&\$43,000\\\text { Net income before taxes. }&\$12,000\\\text { income taxes }&\$4,000\\\text {Net income. }&\$8,000\\\end{array}$
The times interest earned ratio is closest to:

• A) 1.83
• B) 0.28
• C) 1.28
• D) 0.19

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Definitions:

Serviced

The act of performing maintenance or repair work on a vehicle or machinery to ensure it operates correctly.

Trailer Component

A part or element used in the construction or assembly of a trailer, such as axles, brakes, or lighting systems.

Tractor Chassis

The main structural frame of a tractor, to which all other components and systems are attached or supported.

Kingpin

(1) The linkage pin used in a steering knuckle that permits the assembly to pivot, or the tempered steel, coupling pin mounted on a trailer upper coupler that engages with fifth wheel jaws; (2) The lugged pin built into a trailer upper coupler assembly that engages to jaws in a fifth wheel assembly, permitting articulation at the fifth wheel. Forged from middle alloy steels and tempered. In North America, a kingpin is usually welded into the upper coupler; elsewhere, it is more often bolted.