Cutsinger Corporation has provided the following data from its most recent income statement:
$\begin{array}{lr}
\text { Net operating income }&\$55,000\
\text {interest expense. }&\$43,000\
\text { Net income before taxes. }&\$12,000\
\text { income taxes }&\$4,000\
\text {Net income. }&\$8,000\
\end{array}$
The times interest earned ratio is closest to:
A) 1.83
B) 0.28
C) 1.28
D) 0.19

Question

Cutsinger Corporation has provided the following data from its most recent income statement:
$\begin{array}{lr}
\text { Net operating income }&\$55,000\
\text {interest expense. }&\$43,000\
\text { Net income before taxes. }&\$12,000\
\text { income taxes  }&\$4,000\
\text {Net income. }&\$8,000\
\end{array}$
 The times interest earned ratio is closest to:
A) 1.83
B) 0.28
C) 1.28
D) 0.19

Quizplus · Accepted Answer

The Answer of Cutsinger Corporation has provided the following data from its most recent income statement:
$\begin{array}{lr}
\text { Net operating income }&\$55,000\
\text {interest expense. }&\$43,000\
\text { Net income before taxes. }&\$12,000\
\text { income taxes  }&\$4,000\
\text {Net income. }&\$8,000\
\end{array}$
 The times interest earned ratio is closest to:
A) 1.83
B) 0.28
C) 1.28
D) 0.19

Cutsinger Corporation Has Provided the Following Data from Its Most