Question
The following amounts were taken from the financial statements of Smiley & Smiley Gifts: 2022 2021 Current liabilities $280,000 $220,000 Long-term liabilities 800,000 600,000 Interest
The following amounts were taken from the financial statements of Smiley & Smiley Gifts:
| 2022 | 2021 | |||
|---|---|---|---|---|
| Current liabilities | $280,000 | $220,000 | ||
| Long-term liabilities | 800,000 | 600,000 | ||
| Interest expense | 100,000 | 50,000 | ||
| Income tax expense | 120,000 | 58,000 | ||
| Net income | 300,000 | 170,000 | ||
| Net cash provided by operating activities | 480,000 | 270,000 |
How much is the times interest earned for 2022?
4.0 times
3.0 times
4.8 times
5.2 times
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
