Balance Sheet and Income Statement Data Indicate the Following: ​

question 109

Multiple Choice

Balance sheet and income statement data indicate the following: ​
Based on the data presented above,what is the times interest earned ratio? (Round to two decimal places.)

• A) 5.00
• B) 5.44
• C) 4.00
• D) 4.33

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Definitions:

Goods Available for Sale

All the products that a company has in its inventory at the beginning of a period plus any purchases made during that period.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, essential for calculating cost of goods sold.

Gross Profit

The financial gain made after subtracting the cost of goods sold from the total sales revenue.

Net Sales

Net sales is the revenue from sales of goods or services after subtracting returns, allowances for damaged or missing goods, and discounts.