A company's has fixed interest expense of $52,000,income taxes expense of $121,000,and net income of $281,000.The company's times interest earned ratio equals:
A)8.73.
B)5.40.
C)7.73.
D)2.33.
E)0.11.

Name: A company's has fixed interest expense of $52,000,income taxes expense of $121,000,and net income of $281,000.The company's times interest earned ratio equals: A)8.73. B)5.40. C)7.73. D)2.33. E)0.11.
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Times interest earned ratio = Net income / Fixed interest expense= $281,000 / $52,000= 5.40

A Company's Has Fixed Interest Expense of $52,000,income Taxes Expense