Refer to the Following Selected Financial Information from Graphics, Inc

question 181

Multiple Choice

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned. $$\begin{array} { | l | r | } \hline & \\\hline \text { Interest expense } & \$ 9,100 \\\hline \text { Income tax expense } & 22,700 \\\hline \text { Net income after tax } & 56,500 \\\hline\end{array}$$

• A) 9.7.
• B) 8.7.
• C) 3.7.
• D) 2.5.
• E) 6.2.

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Definitions:

Days In Inventory

Days in inventory is a financial metric that measures the average number of days a company holds inventory before selling it, indicating the efficiency of inventory management.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Dividend Yield

A metric indicating the annual dividends a firm distributes in relation to its share price.

Asset Turnover

A financial ratio indicating how efficiently a company uses its assets to generate revenue.