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:

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The times interest earned ratio is calculated as (Net Income + Interest Expense + Income Tax Expense) / Interest Expense. Here, it is ($281,000 + $52,000 + $121,000) / $52,000 = 8.73.

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