Selected Financial Data for Company B Is Provided Below: What

question 134

Multiple Choice

Selected financial data for Company B is provided below: What is the times interest earned ratio for Company B?
$$\begin{array} { | l | r | } \hline \text { ( in milions) } & \text { Compamy B } \\\hline \text { Sales } & \$ 47,220 \\\hline \text { Interest expense } & 287 \\\hline \text { Tax expense } & 1,042 \\\hline \text { Net income } & \$ 1,783 \\\hline\end{array}$$

• A)6.2 times.
• B)10.8 times.
• C)0.2 times.

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Definitions:

Merchandise Inventory

Goods or products that a retailer, wholesaler, or distributor holds for the purpose of resale to customers.

Debit

An accounting entry that increases asset or expense accounts, or decreases liabilities or equity accounts, recorded on the left side of an accounting ledger.

Merchandise Inventory

Goods and products that a retailer or wholesaler has on hand to sell to customers.

Buyer

A person or organization that purchases goods or services for personal use or consumption.