Use the following information from separate companies a through f to compute times interest earned.

Which company indicates the strongest ability to pay interest expense as it comes due?

Exercise 9-9 Computing and interpreting times interest earned A1 Check

(b) 11.00 Net Income (Loss) Interest Expense Income Taxes

a. $115,000 $44,000 $ 35,000

b. 110,000 16,000 50,000

c. 100,000 12,000 70,000

d. 235,000 14,000 130,000

e. 59,000 14,000 30,000

f. (5,000) 10,000 0 AppendixLO1