Cutsinger Corporation Has Provided the Following Data from Its Most

question 77

Multiple Choice

Cutsinger Corporation has provided the following data from its most recent income statement: $\begin{array}{lr}\text {Net operating income }&\$ 55,000 \\\text {Interest expense }&\$ 43,000 \\\text {Net income before taxes. }&\$ 12,000 \\\text {Income taxes. }&\$ 4,000 \\\text {Net income. }&\$ 8,000\end{array}$ The times interest earned ratio is closest to:

• A)1.83
• B)0.28
• C)1.28
• D)0.19

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Definitions:

Margin Deposit

A margin deposit is an initial sum deposited to cover potential losses when borrowing capital for investing, typically in a margin account for trading securities.

Open Interest

The number of futures contracts outstanding.

Silver Futures

Contracts to buy or sell silver at a future date at a price that is agreed upon today, used for hedging or speculating on the future price of silver.

Agricultural Futures

Futures contracts that are focused on agricultural commodities like wheat, corn, soybeans, and others, allowing farmers and investors to hedge against or speculate on price movements.