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IrinaVladis [17]
3 years ago
10

A company's interest expense is $20,000. Its income before interest expense and income taxes is $140,000. Its net income is $58,

800. The company's times interest earned ratio equals:
Business
1 answer:
Bingel [31]3 years ago
5 0

Answer:

7 times

Explanation:

Interest expense = $20,000

Income before interest and tax = $140,000

Time interest earned ratio = Income before interest and tax / Interest expense

Time interest earned ratio = $140,000 / $20,000

Time interest earned ratio = 7 times

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