The following amounts were taken from the financial statements of Blossom Company: 20172016Current liabilities$1270000$1223000Long-term liabilities18160001621000Interest expense11700054800Income tax expense5360032500Net income318000187000Net cash provided by operating activity328000283000The times interest earned for 2017 is3.7 times.4.2 times.3.2 times.3 times.

Time interest earned ratio indicates the ability of the company to pay out its debt obligation by…

Answered: The following amounts were taken from…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The following amounts were taken from the financial statements of Blossom Company:

	2017	2016
Current liabilities	$1270000	$1223000
Long-term liabilities	1816000	1621000
Interest expense	117000	54800
Income tax expense	53600	32500
Net income	318000	187000
Net cash provided by operating activity	328000	283000

The times interest earned for 2017 is

3.7 times.

4.2 times.

3.2 times.

3 times.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions