Terra Company Reported Income Before Taxes of $90,000

question 143

Multiple Choice

Terra Company reported income before taxes of $90,000. The company is in a 30% income tax bracket. Also, Terra's income statement contained a charge for interest expense amounting to $30,000. Based on this information alone, the company's times interest ratio would be:

• A)2.1.
• B)3.0.
• C)3.1.
• D)4.0.

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Definitions:

Era

A distinct period of history marked by notable events, characteristics, or developments.

Relationship

A connection or association between two or more people, entities, or concepts.

Marketing

The process of promoting, selling, and distributing a product or service, including market research and advertising.

Sales

The activities involved in selling products or services, including marketing, negotiation, and transaction processes.