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Simple Simon's Balance Sheet and Income Statement Accounts Follow What Is Simple Simon's Times Interest Earned Ratio for 2010

question 179

Multiple Choice

Simple Simon's balance sheet and income statement accounts follow:
$\begin{array}{lrrr}\text { At December } 31&2011&2010&2009\\\text { Assets }\\\text { Cash } & \$ 30,872 & \$ 36,086 & \$ 37,974 \\\hline \text { Accounts receivable, net } & 89,476 & 63,151 & 50,632 \\\hline \text { Merchandise inventory } & 112,499 & 83,450 & 54,467 \\\hline \text { Prepaid expenses } & 9,942 & 9,473 & 4,219 \\\hline \text { Plant assets, net } & 291,143 & 268,126 & 244,108 \\\text { Total assets } & \$ 533,932 & \$ 460,286 & \$ 391,400\\\text { Liabilities and Equity }\\\text { Accounts payable } & \$ 130,290 & \$ 76,233 & \$ 50,632 \\\hline \text { Long-term notes payable secured by } & 98,372 & 103,748 & 107,769 \\\text { mortgages on plant assets } & 142,500 & 132,500 & 102,500 \\\hline \text { Common stock, } \$ 10 \text { par value } & 182,770 & 147,805 & 130,499\\\text { Total liabilities and equity }&\$533.932&\$460,286&\$391,400\end{array}$
$Simple Simon's balance sheet and income statement accounts follow: \begin{array}{lrrr}\text { At December } 31&2011&2010&2009\\ \text { Assets }\\ \text { Cash } & \$ 30,872 & \$ 36,086 & \$ 37,974 \\ \hline \text { Accounts receivable, net } & 89,476 & 63,151 & 50,632 \\ \hline \text { Merchandise inventory } & 112,499 & 83,450 & 54,467 \\ \hline \text { Prepaid expenses } & 9,942 & 9,473 & 4,219 \\ \hline \text { Plant assets, net } & 291,143 & 268,126 & 244,108 \\ \text { Total assets } & \$ 533,932 & \$ 460,286 & \$ 391,400\\ \text { Liabilities and Equity }\\ \text { Accounts payable } & \$ 130,290 & \$ 76,233 & \$ 50,632 \\ \hline \text { Long-term notes payable secured by } & 98,372 & 103,748 & 107,769 \\ \text { mortgages on plant assets } & 142,500 & 132,500 & 102,500 \\ \hline \text { Common stock, } \$ 10 \text { par value } & 182,770 & 147,805 & 130,499\\ \text { Total liabilities and equity }&\$533.932&\$460,286&\$391,400 \end{array} What is Simple Simon's times interest earned ratio for 2010? A) 3.57% B) 4.22% C) 3.69% D) 2.75% E) 2.57%$
What is Simple Simon's times interest earned ratio for 2010?

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