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In a recent year, Spartech Corporation had a net income of $200,000, an interest expense of $40,000, and an income tax expense of $25,000. What was Spartech Corporation's time's interest earned ratio for the year? a. 6.63 b. 5.77 c. 7.50 d. 8.00

In a recent year, Spartech Corporation had a net income of $200,000, an interest expense of $40,000, and an income tax expense of $25,000. What was Spartech Corporation's time's interest earned ratio for the year? a. 6.63 b. 5.77 c. 7.50 d. 8.00

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Please provide the correct answer to this financial accounting problem using accurate calculations.

In a recent year, Spartech Corporation had a net income of $200,000, an interest expense of $40,000, and an income tax expense of $25,000. What was Spartech Corporation's time's interest earned ratio for the year? a. 6.63 b. 5.77 c. 7.50 d. 8.00
Transcribed Image Text:In a recent year, Spartech Corporation had a net income of $200,000, an interest expense of $40,000, and an income tax expense of $25,000. What was Spartech Corporation's time's interest earned ratio for the year? a. 6.63 b. 5.77 c. 7.50 d. 8.00
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