Hey tutor provide answer the financial accounting Ai answer not expected Granny's Greens reported Interest expense of$5,700, Income tax expense of $28,000, and Netincome of $88,000. Granny's interest coverageratio is: (Round the final answer to two decimalplaces.)A. 0.05B. 0.06C. 21.35D. 20.35

Step 1: Work back to get the Earnings Before Interest and Taxes (EBIT).= net income + income tax…

Answered: Granny's Greens reported Interest…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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Granny's Greens reported Interest expense of $5,700, Income tax expense of $28,000, and Net income of $88,000. Granny's interest coverage ratio is: (Round the final answer to two decimal places.) A. 0.05 B. 0.06 C. 21.35 D. 20.35