In recent year Cey Corporation had net income of $250,000, interest expense of $50,000, and a times interest earned ratio of 9.What was Cey Corporation's income before taxes for the year?

Question

Quizplus · Accepted Answer

Times interest earned ratio = Net income before taxes / Interest expense
9 = Net income before taxes / 50,000
Net income before taxes = 9 * 50,000 = $450,000
Therefore, the income before taxes for the year was $450,000.

In Recent Year Cey Corporation Had Net Income of $250,000