A company's had fixed interest expense of $6,000,its income before interest expense and any income taxes is $18,000,and its net income is $8,400.The company's times interest earned ratio equals:
A)0.33.
B)0.71.
C)1.40.
D)3.00.
E)12,000.

Question

Quizplus · Accepted Answer

Times Interest Earned Ratio = Income before Interest Expense and Income Taxes/Interest
Expense
Times Interest Earned Ratio = $18,000/$6,000 = 3.00

A Company's Had Fixed Interest Expense of $6,000,its Income Before