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Pia Corporation Has Provided the Following Data from Its Most

question 105

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Pia Corporation has provided the following data from its most recent income statement:

 Net operating income$71,000Interest expense.. $34,000Net income before taxes. $37,000Income taxes $11,000Net income $26,000\begin{array}{l}\text { Net operating income}&\$ 71,000 \\\text {Interest expense.. }&\$ 34,000 \\\text {Net income before taxes. }&\$ 37,000 \\\text {Income taxes }&\$ 11,000 \\\text {Net income }&\$ 26,000\end{array}

The times interest earned ratio is closest to:

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Definitions:

Unit Sales

The total number of individual units of a product sold by a company during a specific period.

Traceable Fixed Expense

A fixed cost that can be directly linked to a specific business segment, product, or service.

Net Operating Income

The income earned by a business through its core operations, not including taxes and interest expenses.

Unit Sales

This term refers to the quantity of individual items sold or expected to be sold.

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