If a Company Had Net Income of $1,486,875,a Times Interest

question 112

Multiple Choice

If a company had net income of $1,486,875,a times interest earned ratio of 4.0,a tax rate of 35%,and operating income of $3,050,000,what is the company's interest expense for the year?

• A)$1,067,500
• B)$725,329
• C)$371,719
• D)$762,500
• E)$1,564,000

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Definitions:

External Influences

Factors outside of an individual that impact their behavior and decisions, including social, cultural, and environmental aspects.

Implicit

Refers to something that is suggested or implied but not directly expressed.

Explicit

Something stated clearly and in detail, leaving no room for confusion or interpretation.

Publicly Stated

Expressed or declared openly in a public forum or environment.