Question
Garnet Company reported the following on its income statement: Income before income taxes $450,000 Income tax expense 52,000 Net income $398,000 An analysis of the
Garnet Company reported the following on its income statement:
| Income before income taxes | $450,000 |
| Income tax expense | 52,000 |
| Net income | $398,000 |
An analysis of the income statement revealed that interest expense was $50,000. Garnet Company's times interest earned are earned was:
a.10 times.
b.8.1 times.
c.7.8 times.
d.11 times.
Step by Step Solution
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Step: 1
1 Earning before interest and taxes balance 450000 50000 500000 2 Less ...
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Financial Accounting An Integrated Statements Approach
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
2nd Edition
324312113, 978-0324312119
