Garnet Company reported the following on its income statement: Income before income taxes $450,000 Income tax expense 52,000 Net income $398,000 An analysis of the income statement revealed that interest expense was $50,000. Garnet Company's times interest earned are earned was _____.
Garnet Company reported the following on its income statement: Income before income taxes $450,000 Income tax expense 52,000 Net income $398,000 An analysis of the income statement revealed that interest expense was $50,000. Garnet Company's times interest earned are earned was _____.
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.7BE
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Garnet Company reported the following on its income statement:
Income before income taxes $450,000 Income tax expense 52,000 Net income $398,000
An analysis of the income statement revealed that interest expense was $50,000. Garnet Company's times interest earned are earned was _____.a.11 timesb.8.1 timesc.10 timesd.7.8 times
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