Connect Access Card for Financial Accounting
9th Edition
ISBN: 9781259738678
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 10, Problem 10.4ME
Computing the Times Interest Earned Ratio
LO10-3 Oak Corporation’s financial statements for the current year showed the following:
| Income Statement | |
| Revenues | $800,000 |
| Expenses | (620,000) |
| Interest expense | (12,600) |
| Pretax income | 167,400 |
| Income tax (30%) | (50,220) |
| Net income | $117,180 |
Compute Oak’s times interest earned ratio.
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Chapter 10 Solutions
Connect Access Card for Financial Accounting
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