If a Company Had Net Income of $3,003,000; Interest Expense

question 142

Short Answer

If a company had net income of $3,003,000; interest expense of $400,000; a tax rate of 40%; and operating income of $5,405,000,what would the times interest earned ratio be for the year?

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Definitions:

Typical Day

A representation of an average or standard day in a specific context, such as a work environment or routine lifestyle.

Best Case Scenario

The most favorable or desirable outcome possible in a situation, often used in planning or forecasting.

Storeowner

is an individual who owns and possibly operates a retail establishment, responsible for the management, decision making, and financial outcomes of the store.

Profitable to Develop

Refers to projects or initiatives that are expected to yield a financial gain upon development or implementation.