Sheehan,Inc.provides the following income statement for 2017:

Calculate the times-interest-earned ratio.(Round your answer to two decimal places. )
A)73.00 times
B)49.00 times
C)43.60 times
D)50.00 times

Question

Sheehan,Inc.provides the following income statement for 2017:

Calculate the times-interest-earned ratio.(Round your answer to two decimal places. )
A)73.00 times 
B)49.00 times 
C)43.60 times 
D)50.00 times

Quizplus · Accepted Answer

D)Times-interest-earned ratio = (Net income + Income tax expense + Interest expense)/ Interest expense = ($43,600 + 5,400 + 1,000)/ 1,000 = 50.00 times

Sheehan,Inc.provides the Following Income Statement for 2017