Savede Quiz: Accounting for Current Liabi... ARequired informationKnowledge Check 01The records of Pippins, Incorporated, included the following information:Net sales475,000Gross marginInterest expenseIncome tax expenseNet income000'0000'0Compute the times interest earned ratio, rounded to the nearest decimal.O 4.8O 6.4O7.4O 20.0< Prevof 19Next >***********IIF3F5F6F8F4#3

Income before interest and tax = 240,000 + 80,000 + 50,000 = 370,000Times Interest earned ratio = Income before interest and tax / Interest = 370,000 / 50,000 = 7.4 (Answer)

Business

Accounting

ledge Cheеck 01 The records of Pippins, Incorporated, included the following information: Net sales Gross margin Interest expense Income tax expense Net income $ 1,000,000 475,000 50,000 80,000 240,000 Compute the times interest earned ratio, rounded to the nearest decimal. O4.8 O 6.4 O7.4 O 20.0

ledge Cheеck 01 The records of Pippins, Incorporated, included the following information: Net sales Gross margin Interest expense Income tax expense Net income $ 1,000,000 475,000 50,000 80,000 240,000 Compute the times interest earned ratio, rounded to the nearest decimal. O4.8 O 6.4 O7.4 O 20.0

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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Question

Saved
e Quiz: Accounting for Current Liabi... A
Required information
Knowledge Check 01
The records of Pippins, Incorporated, included the following information:
Net sales
475,000
Gross margin
Interest expense
Income tax expense
Net income
000'0
000'0
Compute the times interest earned ratio, rounded to the nearest decimal.
O 4.8
O 6.4
O7.4
O 20.0
< Prev
of 19
Next >
***********
II
F3
F5
F6
F8
F4
#3

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