Sugar, Inc. reported the following on its most recent income statement: Earnings before Income Taxes $900,000 Income tax expense 225,000 Earnings after tax $675,000 An analysis of the income statement revealed that interest expense was $180,000. Sugar's times interest earned was Group of answer choices 8.5 times 10 times 7 times 4 times 5 times 7.5 times 11 times 6 times
Sugar, Inc. reported the following on its most recent income statement: Earnings before Income Taxes $900,000 Income tax expense 225,000 Earnings after tax $675,000 An analysis of the income statement revealed that interest expense was $180,000. Sugar's times interest earned was Group of answer choices 8.5 times 10 times 7 times 4 times 5 times 7.5 times 11 times 6 times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
51
Sugar, Inc. reported the following on its most recent income statement:
|
Earnings before Income Taxes |
$900,000 |
|
Income tax expense |
225,000 |
|
Earnings after tax |
$675,000 |
An analysis of the income statement revealed that interest expense was $180,000. Sugar's times interest earned was
Group of answer choices
8.5 times
10 times
7 times
4 times
5 times
7.5 times
11 times
6 times
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