The Times Interest Earned Ratio of McHugh Company Was 4

question 61

Multiple Choice

The times interest earned ratio of McHugh Company was 4.5 times.The interest expense for the year was $20,000,and the company's tax rate was 40%.What was the company's net income?

• A) $22,000.
• B) $42,000.
• C) $54,000.
• D) $66,000.