1. Times interest earned is calculated as a. Income Before Income Tax Interest Expense. b. (Income Before Income Tax Interest Expense) Interest Expense. c. Interest Expense Income Before Income Tax. d. (Income Before Income Tax + Interest Expense) Interest Expense.

2. Horizon Company had interest expense of $767,000 and income before income tax expense of $6,210,000 in the past fiscal year. What is Horizon's times interest earned? a. 0.1 b. 7.1 c. 8.1 d. 9.1