In the past year Cullumber Corporation had net income of $211000, interest expense of $50000, and tax expense of $85000. During the current year, Cullumber refinanced their debt so interest expense is now $42000. Net Income is expected to be $253000 and the tax expense is expected to be $99800. What is Cullumber Corporation's times interest earned after the changes? 06.02 19.40 06.59 02.54

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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In the past year Cullumber Corporation had net income of $211000, interest expense of $50000, and tax
expense of $85000. During the current year, Cullumber refinanced their debt so interest expense is now
$42000. Net Income is expected to be $253000 and the tax expense is expected to be $99800. What is
Cullumber Corporation's times interest earned after the changes?
06.02
9.40
6.59
02.54
Transcribed Image Text:In the past year Cullumber Corporation had net income of $211000, interest expense of $50000, and tax expense of $85000. During the current year, Cullumber refinanced their debt so interest expense is now $42000. Net Income is expected to be $253000 and the tax expense is expected to be $99800. What is Cullumber Corporation's times interest earned after the changes? 06.02 9.40 6.59 02.54
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