Paint Company Following Are Selected Data from Paint Company's Financial

question 201

Multiple Choice

Paint Company Following are selected data from Paint Company's financial statements.
Refer to the Paint Company data.
The company's times interest earned ratio for 2012

• A)shows an increase in the company's ability to pay its current debt when it comes due.
• B)indicates the company cannot meet its current year interest payments out of current year earnings.
• C)increased,which indicates the company's lenders will be pleased.
• D)decreased,which indicates the company has more cash to pay interest on its debt.

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A term used in shipping agreements to indicate that the seller is responsible for goods until they are loaded on a transport vessel, after which the buyer assumes responsibility.

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