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For the year 20X4, Lorien Company reported net income of $150,000. Lorien has not provided you with all of the detailed revenues and expenses that
For the year 20X4, Lorien Company reported net income of $150,000. Lorien has not provided you with all of the detailed revenues and expenses that went into the calculation of this $150,000 net income. However, you do know that sales for the year were $900,000, depreciation expense was $60,000, interest expense was $45,000, and income tax expense was $75,000. Using these data, compute Lorien Companys TIMES INTEREST EARNED RATIO for the year 20X4.
a. 5.00
b. 4.33
c. 6.00
d. 8.50
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