The following table is used for calculations:

• Balance Sheet Assets
• Cash $150,000
• Accounts receivable 400,000
• Inventory 600,000
• Net fixed assets $1,800,000
• Liabilities and owners equity
• Accounts payable $150,000
• Notes payable 150,000
• Long-term debt 1,200,000
• Owners equity 1,500,000
• Income statement
• Sales (all credit) $6,000,000
• Cost of goods sold 3,000,000
• Operating expenses 750,000
• Interest expense 750,000
• Income taxes 750,000
• Net income 750,000

Based on the information in the table, the times-interest-earned-ratio is:

Question options:

	53 times
	3 times
	4 times
	2 times

The following table is used for calculations:

• Balance Sheet Assets
• Cash $150,000
• Accounts receivable 400,000
• Inventory 600,000
• Net fixed assets $1,800,000
• Liabilities and owners equity
• Accounts payable $150,000
• Notes payable 150,000
• Long-term debt 1,200,000
• Owners equity 1,500,000
• Income statement
• Sales (all credit) $6,000,000
• Cost of goods sold 3,000,000
• Operating expenses 750,000
• Interest expense 750,000
• Income taxes 750,000
• Net income 750,000

Based on the information in the table 1, the return on total assets is:

Question options:

	12%
	25%
	10%
	24%