Desjardin Landscaping's income statement reports net income of $75,300,which includes deductions for interest expense of $11,500 and income taxes of $34,900.Its times interest earned is:
A)10.6 times
B)7.5 times
C)4.0 times
D)6.5 times
E)0.15 times

Question

Quizplus · Accepted Answer

Times interest earned = (Net income + Interest expense) / Interest expense= ($75,300 + $11,500) / $11,500= $86,800 / $11,500= 7.5 times

Desjardin Landscaping's Income Statement Reports Net Income of $75,300,which Includes