The Following Information Is from the Financial Records of Newton

question 11

Essay

The following information is from the financial records of Newton Company for 2014: $\begin{array}{|l|lc|}\hline \text { Sales } & \$ 620,000 \\\hline \text { Interest expense } & 26,000 \\\hline \text { Income tax expense } & 46,000 \\\hline \text { Net income } & 104,000 \\\hline\end{array}$
Required:
Calculate the number of times interest is earned for Newton in 2014. Round your answer to one decimal place.

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Definitions:

Perishable Products

Goods that deteriorate over a short period or have a limited shelf life, requiring timely sale and use.

Credit Periods

The length of time that a lender or supplier allows for payment after a purchase or loan is made.