Wilson Manufacturing shows the following data on its 2024 Accounting statements: Accounts receivable, January 1 $540,000 Accounts receivable, December 31 $680,000 Merchandise inventory, January 1 $750,000 Merchandise inventory, December 31 $820,000 Gross sales $3,600,000 Sales returns and allowances $120,000 Net sales $3,480,000 Cost of goods sold $2,520,000 Income before interest and taxes $580,000 Interest on loans $145,000 Net income $326,250 The times interest earned ratio is: a. 4.00 times per year. b. 3.25 times per year. c. 2.25 times per year. d. 5.00 times per year.

Wilson Manufacturing shows the following data on its 2024 Accounting statements: Accounts receivable, January 1 $540,000 Accounts receivable, December 31 $680,000 Merchandise inventory, January 1 $750,000 Merchandise inventory, December 31 $820,000 Gross sales $3,600,000 Sales returns and allowances $120,000 Net sales $3,480,000 Cost of goods sold $2,520,000 Income before interest and taxes $580,000 Interest on loans $145,000 Net income $326,250 The times interest earned ratio is: a. 4.00 times per year. b. 3.25 times per year. c. 2.25 times per year. d. 5.00 times per year.

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 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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