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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.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
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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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