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The Fortune Company reported the following income for Year 2: Sales $ 138,000 Cost of goods sold 84,000 Gross margin $ 54,000 Selling and administrative
The Fortune Company reported the following income for Year 2:
Sales | $ | 138,000 | |
Cost of goods sold | 84,000 | ||
Gross margin | $ | 54,000 | |
Selling and administrative expense | 23,000 | ||
Operating income | $ | 31,000 | |
Interest expense | 5,800 | ||
Income before taxes | $ | 25,200 | |
Income tax expense | 7,560 | ||
Net income | $ | 17,640 | |
What is the company's number of times interest is earned ratio?
Multiple Choice
4.3 times
5.3 times
3.0 times
None of these answers is correct.
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