Neelty Corporation Has Interest Expense of $16,000, Sales of $600,000

question 281

Multiple Choice

Neelty Corporation has interest expense of $16,000, sales of $600,000, a tax rate of 30%, and after-tax net income of $56,000. The company's times interest earned ratio is closest to:

• A) 6.0
• B) 5.0
• C) 4.5
• D) 3.5

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Definitions:

Team Members

Individuals who are part of a group collaborating towards a common goal or objective, each contributing with their unique skills and expertise.

Team Success

The achievement of desired results or objectives by a group working collaboratively, often measured by project completion, efficiency, or cohesion.

Synergy

The creation of a whole greater than the sum of its individual parts.

Collective Action

The action taken by a group of people working together towards a common goal, often to achieve a social or political outcome.