Answered step by step
Verified Expert Solution
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](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
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](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started