The information related to interest expense of Stereo Music is given below: $$\begin{array} { | l | r | }
\hline \text { Net income } & \$ 255,000 \
\hline \text { Income tax expense } & 102,000 \
\hline \text { Interest expense } & 65,000 \
\hline
\end{array}$$ Based on the above data, which of the following is the interest coverage ratio?
A) 4.14 times
B) 3.92 times
C) 6.49 times
D) 4.92 times

Question

The information related to interest expense of Stereo Music is given below: $$\begin{array} { | l | r | } 
\hline \text { Net income } & \$ 255,000 \
\hline \text { Income tax expense } & 102,000 \
\hline \text { Interest expense } & 65,000 \
\hline
\end{array}$$ Based on the above data, which of the following is the interest coverage ratio?
A) 4.14 times
B) 3.92 times
C) 6.49 times
D) 4.92 times

Quizplus · Accepted Answer

The Answer of The information related to interest expense of Stereo Music is given below: $$\begin{array} { | l | r | } 
\hline \text { Net income } & \$ 255,000 \
\hline \text { Income tax expense } & 102,000 \
\hline \text { Interest expense } & 65,000 \
\hline
\end{array}$$ Based on the above data, which of the following is the interest coverage ratio?
A) 4.14 times
B) 3.92 times
C) 6.49 times
D) 4.92 times

The Information Related to Interest Expense of Stereo Music Is