Financial statements for Narstad Corporation appear below:

-Narstad Corporation's times interest earned for Year 2 was closest to:
A)11.0
B)10.0
C)18.0
D)7.0

Question

Financial statements for Narstad Corporation appear below:

-Narstad Corporation's times interest earned for Year 2 was closest to:
A)11.0 
B)10.0 
C)18.0 
D)7.0

Quizplus · Accepted Answer

The times interest earned ratio is calculated by dividing earnings before interest and taxes (EBIT) by interest expense. The correct answer is based on the given options and the calculation of this ratio for Narstad Corporation in Year 2.

Financial Statements for Narstad Corporation Appear Below