A company's balance sheet and income statement accounts follow:
$\begin{array}{lrrr}
\text {At December 31}&2014&2013&2012\
\text { Assets}\
\text { Cash } & \$ 30,872 & \$ 36,086 & \$ 37,974 \
\text { Accounts receivable, net } & 89,476 & 63,151 & 50,632 \
\text { Merchandise inventory } & 112,499 & 83,450 & 54,467 \
\text { Prepaid expenses } & 9,942 & 9,473 & 4,219 \
\text { Plant assets, net } & 291,143 & 268,126 & 244,108 \
\text { Total assets } & \$ 533,932 & \$ 460,286 & \$ 391,400 \
\text { Liabilities and Equity}\
\text { Accounts payable } & \$ 130,290 & \$ 76,233 & \$ 50,632 \
\text { Long-term notes payable secured by } & \
\text { mortgages on plant assets } & 98,372 & 103,748 & 107,769 \
\text { Common stock, } \$ 10 \text { par value } & 142,500 & 132,500 & 102,500 \
\text { Retained earnings } & 182,770 & 147,805 & 130,499 \
\text { Total liabilities and equity } &\$ 533,932 & \$ 460,286 & \$ 391,400
\end{array}$

What is the company's times interest earned ratio for 2013?
A) 3.57%
B) 4.22%
C) 3.69%
D) 2.75%
E) 2.57%

Question

A company's balance sheet and income statement accounts follow:
$\begin{array}{lrrr}
 \text {At December 31}&2014&2013&2012\
 \text { Assets}\ 
 \text { Cash } & \$ 30,872 & \$ 36,086 & \$ 37,974 \
 \text { Accounts receivable, net } & 89,476 & 63,151 & 50,632 \
 \text { Merchandise inventory } & 112,499 & 83,450 & 54,467 \
\text { Prepaid expenses } & 9,942 & 9,473 & 4,219 \
\text { Plant assets, net } & 291,143 & 268,126 & 244,108 \
\text { Total assets } & \$ 533,932 & \$ 460,286 & \$ 391,400 \
\text { Liabilities and Equity}\
\text { Accounts payable } & \$ 130,290 & \$ 76,233 & \$ 50,632 \
 \text { Long-term notes payable secured by } & \
\text { mortgages on plant assets } & 98,372 & 103,748 & 107,769 \
 \text { Common stock, } \$ 10 \text { par value } & 142,500 & 132,500 & 102,500 \
\text { Retained earnings } &  182,770 & 147,805 & 130,499 \
 \text { Total liabilities and equity } &\$ 533,932 & \$ 460,286 & \$ 391,400
\end{array}$

What is the company's times interest earned ratio for 2013?
A) 3.57% 
B) 4.22% 
C) 3.69% 
D) 2.75% 
E) 2.57%

Quizplus · Accepted Answer

The Answer of A company's balance sheet and income statement accounts follow:
$\begin{array}{lrrr}
 \text {At December 31}&2014&2013&2012\
 \text { Assets}\ 
 \text { Cash } & \$ 30,872 & \$ 36,086 & \$ 37,974 \
 \text { Accounts receivable, net } & 89,476 & 63,151 & 50,632 \
 \text { Merchandise inventory } & 112,499 & 83,450 & 54,467 \
\text { Prepaid expenses } & 9,942 & 9,473 & 4,219 \
\text { Plant assets, net } & 291,143 & 268,126 & 244,108 \
\text { Total assets } & \$ 533,932 & \$ 460,286 & \$ 391,400 \
\text { Liabilities and Equity}\
\text { Accounts payable } & \$ 130,290 & \$ 76,233 & \$ 50,632 \
 \text { Long-term notes payable secured by } & \
\text { mortgages on plant assets } & 98,372 & 103,748 & 107,769 \
 \text { Common stock, } \$ 10 \text { par value } & 142,500 & 132,500 & 102,500 \
\text { Retained earnings } &  182,770 & 147,805 & 130,499 \
 \text { Total liabilities and equity } &\$ 533,932 & \$ 460,286 & \$ 391,400
\end{array}$

What is the company's times interest earned ratio for 2013?
A) 3.57% 
B) 4.22% 
C) 3.69% 
D) 2.75% 
E) 2.57%

A Company's Balance Sheet and Income Statement Accounts Follow What Is the Company's Times Interest Earned Ratio for 2013