Question
Deacon Corporation has provided the following financial data from its balance sheet and income statement: Year 2 Year 1 Total assets $ 1,220,000 $ 1,182,000
Deacon Corporation has provided the following financial data from its balance sheet and income statement:
| Year 2 | Year 1 | |||||
| Total assets | $ | 1,220,000 | $ | 1,182,000 | ||
| Total liabilities | $ | 476,000 | $ | 472,000 | ||
| Total stockholders' equity | $ | 744,000 | $ | 710,000 | ||
| Net operating income (income before interest and taxes) | $ | 68,739 | ||||
| Interest expense | $ | 25,000 | ||||
The companys times interest earned ratio for Year 2 is closest to:
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
18th Edition
0137879199, 9780137879199
