Answer:
times interest earned= 9.49
Explanation:
Giving the following information:
Ron Landscaping's income statement reports net income of $75,200, which includes deductions for interest expense of $13,200 and income taxes of $36,900.
First, we need to calculate the income before taxes and interest expense:
EBIT= 75,200 + 13,200 + 36,900= $125,300
Now, to calculate the times interest earned we need to use the following formula:
times interest earned= EBIT/ interest expense= 125,300/13,200= 9.49
