Answered: Income before income taxes Income tax…

Income before income taxes Income tax expense Net income $356,883 107,065 $249,818 Interest expense was $73,432. Hsu Company's times interest earned ratio Oa. 5.86 times Ob. 3.4 times timon

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Question

Hsu Company reported the following on its income statement:
Income before income taxes
Income tax expense
Net income
$356,883
107,065
$249,818
Interest expense was $73,432. Hsu Company's times interest earned ratio (rounded to two decimal places) is
Oa. 5.86 times
Ob. 3.4 times
Oc. 4.86 times
Od. 2.4 times

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