The Times Interest Earned Ratio of McHugh Company Is 4

question 94

Multiple Choice

The times interest earned ratio of McHugh Company is 4.5. The interest expense for the year was $20,000, and the company's tax rate is 40%. The company's net income is:

• A) $22,000
• B) $42,000
• C) $54,000
• D) $66,000

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