A company's had fixed interest expense of $5,000,its income before interest expense and income taxes is $17,000,and its net income is $9,400.The company's times interest earned ratio equals:
A)0.5.
B)1.8.
C)1.9.
D)3.4.
E)0.3.

Question

Quizplus · Accepted Answer

Times interest earned ratio = (Income before interest and taxes) / (Interest expense)

= $17,000 / $5,000

= 3.4

Therefore, the answer is choice D, 3.4.

A Company's Had Fixed Interest Expense of $5,000,its Income Before