Consolidated Industries Has Total Interest Charges of $20,000 Per Year

question 100

Multiple Choice

Consolidated Industries has total interest charges of $20,000 per year. Sales of $2 million generated an operating income of $220,000 and an after-tax profit of 6% of sales. The firm has a marginal tax rate of 39%. What is the firm's times-interest-earned ratio?

• A) 10
• B) 11
• C) 12
• D) 13

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Definitions:

Axon Membrane

The lipid bilayer covering an axon, critical in maintaining the electrical potential and facilitating the conduction of nerve impulses.

Positively Charged Ions

Atoms or molecules that have lost one or more electrons, resulting in a net positive charge.

Synaptic Gaps

The tiny spaces between neurons, across which neurotransmitters are released to facilitate neural communication.

Neural Pathway

Networks of neurons in the brain that transmit signals from one part to another, enabling communication between different brain areas or between the brain and the rest of the body.