Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

The following information was available for the year ended December 31, 2019: Earnings before interest and taxes (operating income) $ 50,000 Interest expense 10,000 Income

The following information was available for the year ended December 31, 2019:

Earnings before interest and taxes (operating income) $ 50,000

Interest expense 10,000

Income tax expense 12,000

Net income 28,000

Total assets at year-end 200,000

Total liabilities at year-end 120,000

The times interest earned for the year ended December 31, 2019 was:

Multiple choice:

4.2 times

5.0 times

6.0 times

2.8 times

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

13th Edition

978-0470423684

Students also viewed these Accounting questions