Use the following information from separate companies a through d: Net Income (Loss) Interest Expense Income Taxes a. $ 111, 000 $ 59,940 $ 27,750 b. 105, 600 25, 344 38,016 c. 94, 350 25, 475 39,627 d . 114, 100 4,564 54, 768 Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?

Use the following information from separate companies a through d: Net Income (Loss) Interest Expense Income Taxes a. $ 111, 000 $ 59,940 $ 27,750 b. 105, 600 25, 344 38,016 c. 94, 350 25, 475 39,627 d . 114, 100 4,564 54, 768 Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?

Corporate Financial Accounting

15th Edition

ISBN:9781337398169

Author:Carl Warren, Jeff Jones

Publisher:Carl Warren, Jeff Jones

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.7BE: To determine: Times interest earned ratio Given info: Income before income tax and interest expense....

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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 >
Which company indicates the strongest ability to pay interest expense as it comes due?
pregunta anexa question in image
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