Deacon Corporation has provided the following financial data from its balance sheet and income statement:

-The company's times interest earned for Year 2 is closest to:
A) 2.74
B) 8.02
C) 5.21
D) 4.21

Question

Deacon Corporation has provided the following financial data from its balance sheet and income statement:
 
-The company's times interest earned for Year 2 is closest to:
A) 2.74 
B) 8.02 
C) 5.21 
D) 4.21

Quizplus · Accepted Answer

Times interest earned = Earnings before interest expense and income taxes
= $67,769 ÷ $13,000 = 5.21 (rounded)

Deacon Corporation Has Provided the Following Financial Data from Its