Please Refer to Table 4-1 for the Following Questions

question 31

Multiple Choice

Please refer to Table 4-1 for the following questions.
Table 4-1
Stewart Company
Balance Sheet

-Based on the information in Table 4-1,the times interest earned ratio is

• A) 32.33 times.
• B) 23.75 times.
• C) 19.00 times.
• D) 12.33 times.

---

Definitions:

Moody's "Aaa"

The highest credit rating given by Moody's Investors Service, denoting the lowest risk of default for bonds and other fixed-income securities.

Default Rate

The percentage of borrowers who fail to remain current on their loans or credit agreements, indicating the level of credit risk associated with a loan portfolio.

Operating Activities

Business activities directly related to the production and delivery of goods and services, forming the primary revenue-producing activities of an entity.

Operating Cash Shortfalls

Situations where a business does not generate enough cash from its operating activities to meet its operational expenses.