Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information was drawn from the accounting records of Woo Company. Current assets $ 55,000 Long-term assets (Plant assets) 370,000 Current liabilities 41,000 Long-term
The following information was drawn from the accounting records of Woo Company.
| Current assets | $ | 55,000 | |
| Long-term assets (Plant assets) | 370,000 | ||
| Current liabilities | 41,000 | ||
| Long-term liabilities | 120,000 | ||
| Stockholders' Equity | 275,000 | ||
| Earnings before interest and taxes | 61,000 | ||
| Interest expense | 16,000 | ||
Based on this information, the company's times interest earned measure is (Round your answer to two decimal places.)
Multiple Choice
-
4.14 times.
-
6.47 times.
-
2.31 times.
-
3.81 times.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started