In a recent year, Derek Corporation had net income of $150,000, interest expense of $30,000, and income

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In a recent year, Derek Corporation had net income of $150,000, interest expense of $30,000, and income tax expense of $20,000. What was Derek Corporation’s times interest earned ratio for the year?

(a) 5.00.

(c) 6.67.

(b) 4.00.

(d) 7.50.

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Accounting Tools For Business Decision Making

ISBN: 9780470534786

4th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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