Financial Statements for Narumi Company Appear Below -Narumi Company's Times Interest Earned for Year 2 Was Closest

question 174

Multiple Choice

Financial statements for Narumi Company appear below:

$\begin{array}{|l|r|}\hline&\text {Larned Company } \\&\text { Income Statement } \\&\text { For the Year Ended December 31, Year } \\&2\\&\text { (dollars in thousands) }\\\hline \text { Sales (All on Account) } & \$ 2050 \\\hline \text { Costs of Goods Sold } & \$ 1430 \\\hline \text { Gross Margin } & \$ 620 \\\hline \text { Operating Expenses } & \$ 240 \\\hline \text { Net Operating Income } & \$ 380 \\\hline \text { Interest Expense } & \$ 50 \\\hline \text { Net Income before Taxes } & \$ 330 \\\hline \text { Income Taxes (30\%) } & \$ 99 \\\hline \text { Net Income } & \$ 231\\\hline \end{array}$



-Narumi Company's times interest earned for Year 2 was closest to which of the following?

• A) 4.6 times.
• B) 6.6 times.
• C) 7.6 times.
• D) 12.4 times.

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Definitions:

Coping Skills

Techniques or strategies employed by individuals to deal effectively with stress, problems, and challenging situations.

Naturally Occurring Consequences

The automatic outcomes that happen as a direct result of someone's actions without external intervention.

Environmental Consequences

The impact or outcomes that actions or policies have on the natural environment, including changes to ecosystems, biodiversity, and climate.

Friendship Patterns

The recurring structures and dynamics observed in how individuals form and maintain friendships.