PFM Company Has Sales of $210,000,interest Expense of $8,000,a Tax

question 156

Multiple Choice

PFM Company has sales of $210,000,interest expense of $8,000,a tax rate of 30%,and a net profit after tax of $35,000.What is PFM Company's times interest earned ratio?

• A) 4.375 times.
• B) 5.375 times.
• C) 7.250 times.
• D) 15.500 times.

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