The Following Information Is from the Financial Records of Newton

question 144

Essay

The following information is from the financial records of Newton Company for Year 2:
Required:
Calculate the number of times interest is earned for Newton in Year 2. Round your answer to one decimal place. $\begin{array}{|l|lc|}\hline \text { Sales } & \$ & 620,000 \\\hline \text { Interest expense } & 26,000 \\\hline \text { Income tax expense } & 46,000 \\\hline \text { Net income } & 104,000 \\\hline\end{array}$

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Definitions:

Inside Diameter

The distance across the innermost part of a cylinder or tube, often measured to ensure the correct sizing for fittings or materials passing through.

Cast Iron Pipe

A type of durable pipe made from iron that has been cast in a mold, often used for water or sewage systems.

ABS Pipe

Acrylonitrile Butadiene Styrene pipe, a type of plastic piping used for waste water and vent lines due to its high resistance to impact and durability.

Valves

Mechanical devices that control the flow and direction of fluids in a system by opening, closing, or partially obstructing passageways.