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IN A RECENT YEAR, DEREK CORPORATION HAD A NET INCOME OF $150,000, AN INTEREST EXPENSE OF $30,000, AND AN INCOME TAX EXPENSE OF $20,000. WHAT WAS DEREK CORPORATION'S TIME'S INTEREST EARNED RATIO FOR THE YEAR? A) 5.00. B) 4.00. C) 6.67. D) 7.50.

IN A RECENT YEAR, DEREK CORPORATION HAD A NET INCOME OF $150,000, AN INTEREST EXPENSE OF $30,000, AND AN INCOME TAX EXPENSE OF $20,000. WHAT WAS DEREK CORPORATION'S TIME'S INTEREST EARNED RATIO FOR THE YEAR? A) 5.00. B) 4.00. C) 6.67. D) 7.50.

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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IN A RECENT YEAR, DEREK CORPORATION HAD A NET INCOME OF $150,000, AN INTEREST EXPENSE OF $30,000, AND AN INCOME TAX EXPENSE OF $20,000. WHAT WAS DEREK CORPORATION'S TIME'S INTEREST EARNED RATIO FOR THE YEAR? A) 5.00. B) 4.00. C) 6.67. D) 7.50.
Transcribed Image Text:IN A RECENT YEAR, DEREK CORPORATION HAD A NET INCOME OF $150,000, AN INTEREST EXPENSE OF $30,000, AND AN INCOME TAX EXPENSE OF $20,000. WHAT WAS DEREK CORPORATION'S TIME'S INTEREST EARNED RATIO FOR THE YEAR? A) 5.00. B) 4.00. C) 6.67. D) 7.50.
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