Use the following information from separate companies a through d Net Income (Loss) $ 178,000 172, 600 151, 300 52,955 63,546 181, 100 7,244 86,928 Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due? Interest Expense $ 85,440 43, 150 Income Taxes $ 44,500 62, 136 Complete this question by entering your answers in the tabs below. Times Interest Interest Earned Ratio Coverage Which company indicates the strongest ability to pay interest expense as it comes due? Which company indicates the strongest ability to pay interest expense as it comes due? < Times Interest Earned Ratio Interest Coverage >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Use the following information from separate companies a through d.
Net Income
(Loss)
Income Taxes
$ 178,000
172, 600
$ 44,500
62, 136
151,300
52,955
63,546
181, 100
7,244
86,928
Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?
a.
b.
C.
d.
Interest
Expense
$ 85,440
43, 150
Complete this question by entering your answers in the tabs below.
Interest
Times Interest
Earned Ratio Coverage
Which company indicates the strongest ability to pay interest expense as it comes due?
Which company indicates the strongest ability to pay interest expense as it comes due?
< Times Interest Earned Ratio
Interest Coverage
Transcribed Image Text:Use the following information from separate companies a through d. Net Income (Loss) Income Taxes $ 178,000 172, 600 $ 44,500 62, 136 151,300 52,955 63,546 181, 100 7,244 86,928 Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due? a. b. C. d. Interest Expense $ 85,440 43, 150 Complete this question by entering your answers in the tabs below. Interest Times Interest Earned Ratio Coverage Which company indicates the strongest ability to pay interest expense as it comes due? Which company indicates the strongest ability to pay interest expense as it comes due? < Times Interest Earned Ratio Interest Coverage
Use the following information from separate companies a through d
Net Income
(Loss)
Income Taxes
$ 44,500
$ 178,000
172, 600
62, 136
151,300
52,955
63,546
181, 100
7,244
86,928
Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?
a.
b.
C.
d.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Times Interest Interest
Earned Ratio Coverage
Compute times interest earned.
Company
Interest
Expense
$ 85,440
43, 150
a
b
d
Times Interest Earned Ratio
Choose Numerator:
Income before interest and taxes
$
$
$
$
Choose
Denominator:
Interest expense
/
178,000 X/
$
$
172,600 X/
151,300 X/ $
181,100 1 $
Times Interest Earned Ratio
85,440
43,150
52,955
7,244
=
Ratio
2.08
4.00
2.86
25.00
times
times
times
times
Interest Coverage >
Transcribed Image Text:Use the following information from separate companies a through d Net Income (Loss) Income Taxes $ 44,500 $ 178,000 172, 600 62, 136 151,300 52,955 63,546 181, 100 7,244 86,928 Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due? a. b. C. d. Answer is not complete. Complete this question by entering your answers in the tabs below. Times Interest Interest Earned Ratio Coverage Compute times interest earned. Company Interest Expense $ 85,440 43, 150 a b d Times Interest Earned Ratio Choose Numerator: Income before interest and taxes $ $ $ $ Choose Denominator: Interest expense / 178,000 X/ $ $ 172,600 X/ 151,300 X/ $ 181,100 1 $ Times Interest Earned Ratio 85,440 43,150 52,955 7,244 = Ratio 2.08 4.00 2.86 25.00 times times times times Interest Coverage >
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