If a company had net income of $2,499,600, interest expense of 246,000, a tax rate of 40%, and operating income of $4,440,000, what is the times interest earned ratio?

10.16

18.05

7.89

7.29

4.06

Conner Company borrows $185,900 cash on November 1, 2013, by signing a 150-day, 8% note. What is the total amount of interest expense that Conner will recognize for this note?

	$14,872.
	$0, no interest expense is recognized.
	$1,487.
	$2,189.
	$6,197.