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The data below are for Minersville Company. Total Assets $ 1 0 , 0 0 0 Income Tax Expense 1 , 0 0 0 Accounts

The data below are for Minersville Company.
Total Assets $10,000
Income Tax Expense 1,000
Accounts Receivable 2,500
Total Equity 6,500
Interest Expense 400
Sales 15,000
Cost of Goods Sold 9,000
Accounts Payable 1,200
Net Income 1,500
Minersville needs a financial ratio that indicates whether its borrowing costs are appropriate given its level of income. What is Minersville Companys TIMES INTEREST EARNED RATIO?
4.75
3.75
6.25
7.25

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