The following items have been extracted from the financial statements of Lorien Company for the year 20X1. Total liabilities Net income Gross profit $700 50 400 EBIT (also called operating income) 220 Sales Total assets Income tax expense Cost of goods sold 1,000 1,600 40 600 What is the value of Lorien Company's time's interest earned ratio for 20X1? a. 1.69 b. 3.08 c. 3.38 d. 3 e. 1.29

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 6MCQ
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The following items have been..accounting questions please give me answer

The following items have been extracted from the financial statements of Lorien Company
for the year 20X1.
Total liabilities
Net income
Gross profit
$700
50
400
EBIT (also called operating income) 220
Sales
Total assets
Income tax expense
Cost of goods sold
1,000
1,600
40
600
What is the value of Lorien Company's time's interest earned ratio for 20X1?
a. 1.69
b. 3.08
c. 3.38
d. 3
e. 1.29
Transcribed Image Text:The following items have been extracted from the financial statements of Lorien Company for the year 20X1. Total liabilities Net income Gross profit $700 50 400 EBIT (also called operating income) 220 Sales Total assets Income tax expense Cost of goods sold 1,000 1,600 40 600 What is the value of Lorien Company's time's interest earned ratio for 20X1? a. 1.69 b. 3.08 c. 3.38 d. 3 e. 1.29
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