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Hsu Company reported the following on its income statement:   Income before income taxes $325,364   Income tax expense 97,609   Net income $227,755 Interest expense was $73,540. Hsu Company's times interest earned ratio (rounded to two decimal places) is a.4.42 times b.3.1 times c.2.1 times d.5.42 times

Hsu Company reported the following on its income statement:   Income before income taxes $325,364   Income tax expense 97,609   Net income $227,755 Interest expense was $73,540. Hsu Company's times interest earned ratio (rounded to two decimal places) is a.4.42 times b.3.1 times c.2.1 times d.5.42 times

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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    Hsu Company reported the following on its income statement:

      Income before income taxes $325,364
      Income tax expense 97,609
      Net income $227,755

    Interest expense was $73,540. Hsu Company's times interest earned ratio (rounded to two decimal places) is

    a.4.42 times
    b.3.1 times
    c.2.1 times
    d.5.42 times
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