The following data represent selected information from the comparative income statement and balance sheet for Hot Rolled Corporation for the years ended December 31, 2014 and 2013: •10,000 shares of common shares have been issued and outstanding since the company was established. They had a market value of $90 per share on December 31, 2013, and they were selling for $91.50 on December 31, 2014.
Refer to the table above. Hot Rolled Corporation's times-interest-earned ratio for the year ended December 31, 2014, was:

Question

The following data represent selected information from the comparative income statement and balance sheet for Hot Rolled Corporation for the years ended December 31, 2014 and 2013:  •10,000 shares of common shares have been issued and outstanding since the company was established. They had a market value of $90 per share on December 31, 2013, and they were selling for $91.50 on December 31, 2014.
Refer to the table above. Hot Rolled Corporation's times-interest-earned ratio for the year ended December 31, 2014, was:

Quizplus · Accepted Answer

Times-interest-earned ratio = (Net income + Interest expense + Income tax expense) / Interest expense
For the year ended December 31, 2014:
Times-interest-earned ratio = ($780,000 + $115,000 + $250,000) / $115,000 = 11.88

The Following Data Represent Selected Information from the Comparative Income