The Information Related to Interest Expense of Classic Music,Inc Based on the Above Data,which of the Following Is the Below

question 43

Multiple Choice

The information related to interest expense of Classic Music,Inc.is given below: $$\begin{array} { | l | r | } \hline \text { Net income } & \$ 264,000 \\\hline \text { Income tax expense } & 107,000 \\\hline \text { Interest expense } & 66,000 \\\hline\end{array}$$ Based on the above data,which of the following is the times-interest-earned ratio? (Round the final answer to two decimal places.)

• A) 4.08 times
• B) 4 times
• C) 6.62 times
• D) 5 times

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Definitions:

Fly By Night

A term describing businesses or individuals that appear transient, unreliable, or not committed to long-term obligations.

Output Levels

The quantity of goods or services produced by a company or an economic system within a specific period.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.

Total Cost

The complete cost of production, including both fixed and variable costs.