Financial statements for Orange Company appear below: Dividends during Year 2 totaled $156 thousand, of which $18 thousand were preferred dividends.
The market price of a share of common stock on December 31, Year 2 was $100.

-Orange Company's times interest earned for Year 2 was closest to:
A)16.0
B)28.3
C)17.0
D)11.2

Question

Financial statements for Orange Company appear below:   Dividends during Year 2 totaled $156 thousand, of which $18 thousand were preferred dividends.
The market price of a share of common stock on December 31, Year 2 was $100.

-Orange Company's times interest earned for Year 2 was closest to:
A)16.0 
B)28.3 
C)17.0 
D)11.2

Quizplus · Accepted Answer

Times interest earned = Earnings before interest expense and income taxes F1F1F1S1F1F1F10 Interest expense
= $510 F1F1F1S1F1F1F10 $30 = 17.0

Financial Statements for Orange Company Appear Below: Dividends