A company has an earnings before interest and taxes (EBIT) of $120,000 andinterest expenses of $30,000. What is the times interest earned ratio?A) 3B) 4C) 5D) 6

Explanation of Earnings Before Interest and Taxes (EBIT):Earnings Before Interest and Taxes (EBIT)…

Answered: A company has an earnings before…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 15MCQ: Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels...

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How do I calculae the times interest earned ratio?
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K McDaniel and Associates, Inc. reported the following amounts on its 2024 income statement: Year Ended December 31, 2024 Net income Income tax expense Interest expense $ 22,950 6,600 3,000 What was McDaniel's times-interest-earned ratio for 2024? OA. 7.65 OB. 10.85 OC. 9.85 OD. 8.65 point(s) possible ...
es Assume a company provided the following information: Net operating income Net income before tax Net income Gross margin The times interest earned ratio is closest to: $ 208,000 $ 170,000 $ 119,000 $ 680,000
3
In the recent year Hill Corporation had net income of $140,000, interest expense of $40,000, and tax expense of $20,000. What was Hill Corporation's times interest earned ratio for the year? Select one: О а. 4.0 O a. ОБ. 3.5 Ob. 3.0 d. 5.0
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A company has an earnings before interest and taxes (EBIT) of $120,000 and interest expenses of $30,000. What is the times interest earned ratio? A) 3 B) 4 C) 5 D) 6