ABC Company has sales of $500,000, COGS of $250,000, operating expenses of$200,000, net income of $15,000 and an inventory turnover of 5. What is the timesinterest ratio if ABC pays $10,000 interest?1O 245.

Formula: Times interest ratio = Operating income / interest expense

Answered: ABC Company has sales of $500,000, COGS…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9MC: A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys...

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ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of $15,000 and an inventory turnover of 5. What is the times interest ratio if ABC pays $10,000 interest? 2